Banking in Australia may seem straightforward, but there are some unique aspects to be aware of, especially if you’re new to the country. Whether you’re an international student, expat, or just arriving for a long-term stay, here’s a guide to help you navigate setting up your first Australian bank account and making informed decisions.
The Big Four vs. Online Banks: Which is Right for You?
Australia boasts over 80 banks, giving you plenty of choices, but most people still start by looking at the ‘Big Four’—ANZ (Australia and New Zealand Banking Group), NAB (National Australia Bank), CBA (Commonwealth Bank of Australia), and Westpac. These banks have a long history, offer extensive branch and ATM networks, and cover a wide range of financial products.
But don’t stop there! With the rise of online banks and neobanks, such as Up and Ubank (which merged with 86 400), it’s worth considering newer, tech-driven options. These banks often have lower fees and are designed for mobile-first customers. While traditional banks offer more in-person support and a broader range of services, online banks tend to provide lower fees and higher interest rates on savings accounts.
Quick Comparison:
| Aspect | Traditional Banks (Big Four) | Online Banks / Neobanks |
|---|---|---|
| Fees | Often charge monthly fees; waived with minimum deposits | Typically no monthly fees |
| ATM Access | Broad ATM network; many have eliminated ATM fees | Limited or no ATM network |
| Interest Rates | Moderate interest rates on savings | Often higher interest rates |
| Customer Service | Branches for in-person service | Fully online or via app |
| Account Setup | Can be done online or in-person | Fully digital |
Opening an Australian Bank Account
Wondering if you can open an account before you arrive in Australia? While some banks still offer this service, stricter regulations now require in-person verification for many. Before making any plans, check with your chosen bank to confirm their process.
If you can’t open an account until you arrive, no worries! Once you’re in Australia, setting up your account is relatively straightforward. Simply visit a branch to complete the process, including picking up your ATM card and setting up your PIN. This typically takes about five working days, so plan to have enough funds to cover your initial expenses during this period.
ID Requirements for Non-Residents
The 100-point ID check is still a key part of opening a bank account in Australia, but for non-residents, these requirements have become a little stricter. Generally, presenting your passport and driver’s license will meet the standard for identification, but non-residents or international students may need additional documents such as a visa or proof of residence.
Tip: Check your chosen bank’s website before heading to a branch, as requirements vary from bank to bank. ANZ, for instance, may ask for different forms of ID compared to Commonwealth Bank.
Australian Bank Fees: What to Watch Out For
Australian banks are notorious for charging monthly account maintenance fees, especially at traditional banks. However, if you choose a bank like Commonwealth Bank or NAB, you may find that they’ll waive fees if you deposit a minimum of $2,000 each month (usually from a salary).
Looking to avoid fees altogether? Many online banks and neobanks offer fee-free everyday accounts, and this trend has grown in recent years. These digital-first banks often don’t charge monthly maintenance fees, though they might limit free ATM usage if they don’t have a large ATM network.
One welcome change: many traditional banks have removed ATM fees for using other banks’ machines, meaning you can access cash from different ATMs across the country without worrying about incurring extra costs.
Interest Rates on Savings Accounts
Remember the days when you could find savings accounts offering 4.5-6% interest? Those days are behind us. Today, competitive interest rates hover around 3-4%, particularly with online banks like ING and Ubank, which often offer higher rates than traditional banks.
If you’re serious about growing your savings, it’s worth shopping around. Comparison sites like Canstar or Finder can help you find the best interest rates and fee structures, both for traditional and online banks.
Mobile and Online Banking: The New Normal
Managing your finances on the go is easier than ever, thanks to the rise of neobanks and mobile-first options. Up Bank and Revolut, for example, offer slick apps where you can handle everything from bill payments to real-time spending insights and savings goals—all without stepping into a branch.
Most traditional banks also have strong mobile apps, but their focus is often on providing access to the broad range of services they offer, including home loans, investment products, and insurance. Meanwhile, neobanks focus on simplicity, giving you quick access to core banking services like saving, spending, and transferring funds.
International Students and Non-Residents
If you’re an international student or non-resident, opening an Australian bank account comes with a few extra steps. Some banks offer accounts specifically designed for international students, such as NAB’s Classic Banking Account or ANZ’s International Student Package. These accounts may have slightly more lenient ID requirements or lower fees but often involve a more thorough verification process.
For international students, the best advice is to start the process early. You might even be able to open an account remotely before arriving, but always double-check the current rules, as banks change policies frequently.
Key Resources
For more information on banking options and to explore the current offerings, visit the websites of both traditional and online banks:
Final Thoughts and Any Tips?
Navigating the Australian banking system is relatively easy once you know what to look for. Whether you’re a fan of traditional banks or prefer the flexibility and cost savings of online banks, you’ve got plenty of options. Just make sure to do your research, compare fees, and look for accounts that fit your lifestyle and banking habits.
For those who have already made the move to Australia – What’s been your experience with banking down under? Have you tried any of the online options, or do you stick with the Big Four? Share your thoughts, tips, or any questions in the comments below—we’d love to hear from you! Let’s start a conversation.
Ps – The information shared in this article is current as of the date the article was published (September 2024). Interest rates and fees will vary so please use the resources shared above to research the best account for your individual circumstances.