What are the Types of Bank Accounts in Australia?
Generally, two types of accounts are commonly used in Australia: consumer accounts and deposit accounts, but many banks will set up separate student accounts. The differences are as follows: If you want to go to other cities such as Sydney or Melbourne, you should know about it.
Current Account
A current account is the most common type used to open a bank account in Australia and can be used for everyday expenses. You can access money at a cash machine or bank, pay weekday bills, and use your debit card to make purchases. There is no interest on this account.
Savings Account
The best thing about a savings account is that it generates interest. However, it is necessary to have a spending account first. Therefore, when students go to the bank to open an account, it is recommended that they open both accounts together. Money is first deposited into the spending account and then transferred from the spending account to the deposit account to generate interest. When you need to withdraw money, you can transfer the funds from the deposit account to the spending account.
Student Account & International Student Account
Many banks in Australia offer specialised student accounts, which international students can consider to benefit from student-only services such as no annual account fee. Applying for a student account will exempt you from fees, interest taxes, and more. Australia’s bank interest rates are complex, with different interest rates for different amounts over different periods, so be sure to look at the interest rate when making a deposit. Overseas wire transfers are cheap, and there are no problems with banknote transfers.
Suggestions for Account Selection
It is recommended that you open two accounts when you open an account.
When different amounts of money are deposited in foreign banks, the types of deposit accounts also have some slight differences.
Opening two accounts can bring some advantages. Still, because many people are careless and often do not pay attention to their bank statements, it is straightforward to overdraw a consumer account. If the account is stretched, the bank will charge relative penalty fees for overdrawn users. Therefore, people should check their bills regularly to avoid being penalised for overdrafting.
How Do You Apply for a Bank Card in Australia?
The Information Required to Open a Bank Account in Australia
The following is the information needed to open a bank account in Australia:
Passport
Visa printout
Letter of Offer (Letter of Acceptance) from the school or college
Electronic Confirmation of Enrolment eCoE (Electronic Confirmation of Enrolment eCoE)
Rental address
The Australian Bank Account Opening Method
Online application
The Australian bank card application can be handled before you go to Australia; nowadays, most banks can apply for an account through an online application. If you use online, you usually need your passport number, email address, time of arrival in Australia and the city of arrival of this information; some banks also need to provide you with a mobile phone number.
After arriving in Australia, you need to go to the branch where you applied online for card activation and account opening, and you can’t get the card on the spot; it needs to be mailed to the address you provided a week later.
Bank on-site window account opening
You can also wait until you arrive in Australia and then do the bank card; it is best to do it within six weeks after arriving in Australia; you need to provide your visa and your passport as proof of identity. If your English is not very good, some banks in Sydney and Melbourne have bank staff who speak Chinese. Don’t be shy about asking questions if you are unsure!
Things to Consider When Applying for a Card
Many students who have just gone to Australia to apply for a card will ask if they need a tax ID number to apply for a bank card. It does not need Oh! However, using for and then updating the bank information after opening an account is best. Otherwise, your NetBank saver/goal saver will charge you a very high withholding tax every month. if the account balance is relatively large or has deposits, it is recommended that you consider doing two accounts, a regular and a short-term; the difference is the interest rate.
If you need a credit card, the bank will usually ask the applicant to provide a certificate of deposit or bank transactions in their home country. If the student has just arrived in Australia and does not have any of these, the bank teller will also estimate your overdraft limit by asking questions.
What are the Common Australian Banks?
Four central banks are best known in Australia, and these four are also standard on the streets of Australia:
Commonwealth Bank of Australia (Commonwealth Bank)
ANZBank (Australia and New Zealand Bank)
National Australia Bank
Westpac BankingCorporation.
If you put your money in these four banks, you can conveniently find ATMs or sub-branches in shopping malls or public places to do what you want.
Commonwealth Bank of Australia
Official website address: https://www.commbank.com.au/
Bank introduction: The Commonwealth Bank of Australia (CBA), headquartered in Sydney, is one of the four central banks in Australia. They can provide free student accounts, and many students choose this bank, so they have a lot of branches and ATMs (every 7-11 has their ATMs), and it is very convenient to withdraw money. Commonwealth Bank’s mobile app and banking website are also the best, and they also provide insurance services and student credit cards.CBA has a series of preferential policies for international students, and the process is also relatively convenient, supporting online processing. Students can open an online bank account at CBA within the first three months of arriving in Australia.
Advantage:
- With the real-time payment function, every transaction record will be recorded in the payment record.
- Cardless cash withdrawal function
- Transfer money to and from your CBA account using your phone number; no BSB or account number is required.
- Specialised credit card business for students: every student receives a credit card invitation from the Commonwealth with a low threshold, making it a good partner for choppers. Significantly, since overseas transfers are often delayed, having a credit card allows you to live without receiving your living expenses!
- You can apply for Paytag: go to the official website and search for Paytag. About $3.99, Commonwealth will send you a small card according to your billing address; you can stick it anywhere you like so that you can go out without a bank card; when you want to swipe your card, you can attach your mobile phone to the pos machine, under $100 you can pay without a PIN, it’s very convenient! It’s very convenient.
Australia & New Zealand National Bank Limited (ANZ)
Official website address: https://www.anz.com.au/personal/
Bank introduction: ANZ Bank, headquartered in Melbourne, is one of Australia’s four central banks, Australia’s oldest and best-known banks, with a global ranking in the top 50. ANZ Bank is a public company established in Victoria, Australia and listed on the Australian Securities Exchange Limited. It is authorised to conduct banking business in Australia under the Banking Act (Commonwealth) 1959 and is regulated by the Australian Prudential Regulation Authority. ANZ will also offer student accounts without annual fees and provide specialised services for international students. Also, the bank’s mobile app and webpage are very convenient.
Advantage:
- So far, it is the only bank that supports Apple Pay. You can realise the treatment of going out without your bank card but only with your mobile phone so that you can be as convenient as at home!
- Debit cards are available for students over 16 years old;
- The website is apparent and easy to use;
Westpac Banking Corporation (WBC)
Official website address: https://www.westpac.com.au/
Bank introduction: Westpac Banking Corporation (WBC) is Australia’s oldest bank, formerly the Bank of New South Wales (Bank of New South Wales), founded in 1817. WBC Bank is in the Asia-Pacific region and the world with financial agencies. Its online banking system is very comprehensive; you can directly access its system for business settlements, foreign exchange exchange, domestic and overseas Payment of bills, stock trading, etc. Westpac’s primary operations are in Australia, New Zealand and the Pacific Islands. Westpac merged with Challenge Bank in Western Australia in 1995, Trust Bank New Zealand in 1996, and Bank of Melbourne in Victoria in 1997.
Advantage:
- No fees for foreign exchange
- With Westpac’s Global ATM Alliance Network, you can withdraw money from about 50,000 ATMs around the world without paying a withdrawal fee.
National Australia Bank
Official website address: https://www.nab.com.au/?rwd
Bank Introduction: National Australia Bank (NAB) is Australia’s largest commercial bank, founded in 1858, corporatised in 1893 and became a limited company in 1984. Headquartered in Melbourne, National Australia Bank is Australia’s leading banking and financial services organisation, offering a wide range of financial industry services with no annual fees. The global network covers Australia, the United States, the United Kingdom, New Zealand, and Asia, including China, Singapore and Japan.
Advantage:
- The smallest catchment area of the big four banks in Australia, with personal business serving just 3 million people
- It has a sub-branch in Shanghai and an office in Beijing
- NAB Reward Saver: (1) monthly deposit only without withdrawal, enjoy the interest rate of 2.55% (floating, specific to the bank release shall prevail); (2) if you withdraw from this account, the interest rate is only 0.5% (floating, specific to the bank release shall prevail)
Other Australian Banks Recommended
St. George Bank (St. George)
St George Bank is the fifth largest bank in Australia. Providing valuable services to the Australian public, St.George’s close relationship with its customers is reflected in the high level of evaluation given to the bank by its customers compared to other banks.
HSBC
HSBC provides a wide range of financial services in Australia. It has over 7,000 business offices in 81 countries and is headquartered in London.
Citibank Australia
Citibank offers a wide range of flexible banking services in Australia, with an understanding of bank staff to provide exemplary service to customers.
Tips: Consider the following points when choosing to open a bank account in Australia:
Whether the bank is close to where you live or your school, and whether it is convenient to do business.
Whether the account offered to you by this bank is free of charge and whether there are frequent offers.
How much interest does this bank offer on your savings account?
How Do You Choose the Right Bank in Australia?
Once you’ve decided whether you want a trading account or a savings account as your first bank account in Australia, the next step is to choose a bank. There are some things to consider when comparing banks.
Bank fees
Before opening a new bank account, know what fees you may have to pay. Some banks may charge a monthly fee to open an account. However, in some cases, monthly fees can be waived if you meet specific requirements, such as maintaining a minimum balance or completing a certain number of transactions each month with your Debit MasterCard or Visa card.
While monthly account fees and other charges are standard, not all bank accounts charge these fees. Some Australian banks have bank accounts that offer monthly and fee waivers. However, even with these accounts, there are some instances where fees may still be charged, such as overdrawing your account or using your debit card when travelling abroad.
Accessibility
Some banks in Australia have branches all over the country, while others only have branches in specific areas. Some online banks don’t have physical branches at all.
When choosing which Australian bank to open an account with, consider how you prefer to do your banking. If you prefer to visit a branch in person, choose a bank that has a branch near where you live, work or go to school.
Those who regularly withdraw cash may be more interested in the bank’s ATM locations. And people who prefer to do all their banking online may care more about whether the website or mobile app is good.
Customer Service
Whether you access your Australian accounts primarily online or regularly visit branches in person, customer service is an important consideration.
Read online reviews written by Australian residents to learn more about a bank’s reputation and the customer service options it offers.
Australian Bank Account Opening Process
Online Account Opening
1. Enter the CBA Bank website. Click “bank” under the corresponding account type, and create a personal account.
2. Then select whether you are a new user and proceed to the next step (usually, when you first go to Australia to apply for a bank account, you must select the new customer column to register).
3. Enter your details, including your name (shown on your ID), date of birth, email and postal address and phone number.
4. Next, you must create a password, verify it, etc.
5. Select whether you want to add a NetBank Saver account to complete your online registration.
The Bank’s On-site Account Opening
Required documents: passport, COE or student card, mobile phone, address, etc..
Basic steps: first, the lobby manager will make an appointment to open an account. After that, it is to give you the service of the staff account opening process, during which they will introduce you to some special deposits and financial services; when you do not understand, you must be clear and not directly agree.
After the account is opened, the bank card is usually sent to your address in 5-10 working days. At the same time, the bank will also give you the account number of the account as well as the code needed for remittance, which is also convenient for you to make direct deposits and remittances. At this time, they will also help you set up your mobile app so that you can also complete the transfer operation.
What Do I Need to Do After Opening a Bank Account?
After opening a bank account, you can’t get your bank card right away. You must wait about seven working days to receive the bank card sent to your address (the address must be written clearly, oh! ). Then follow the instructions in the post to activate your card and set up your PIN;
Send your Australian bank account information (e.g. account number, bank address, SWIFT Code) to your family members so that they can exchange money when interest rates are low and remit living expenses to you;
Give your Tax File Number (TFN) to your bank after you have applied for it.
What are the Most Common Payment Methods in Australia?
- Debit Credit Card: Australian debit cards come with Visa Pay Wave or MasterCard PayPass, so you don’t need a PIN to pay for purchases of up to AUD$100; touch your card to an EFTPOS machine;
- Debit Credit Cards can be used like a credit card (credit card); entering the card number and other information on the Internet can be easily online shopping – so you do not need to apply for a credit card. You can’t spend money before you pay it back, but you can spend as much money as you have in your account;
- ATMs of the four central banks and many others now offer free cash withdrawals across banks;
- Don’t worry if you forget your wallet; you can use your mobile banking app to withdraw money from your bank’s ATMs. Cardless Cash Withdraw;
- You can transfer money through your mobile phone number without knowing the other party’s bank account number. You don’t need to rush to pay when you go out to eat with your friends; you can transfer money to your friends with your mobile phone number after eating;
- Many Australian merchants now accept UnionPay or AliPay payments;
- Gradually shifting to cashless mode, supermarket self-checkout counters are divided into card-only and ordinary models. Card Only machines can be paid by credit card;
- You can pay by mobile phone or Apple Watch for Apple Pay mobile device payment.
FAQ
Australian Bank Opening Hours
The opening hours of most Australian banks are as follows
Monday to Thursday: 9 am-4 pm.
Friday: 9 am-5 pm.
A few banks offer some services on Saturday mornings: 9.30 am – 12 pm;
Closed on Sundays and public holidays.
When Does the Bank of Australia Conduct Identification?
Australian banks require international students to visit the bank within six weeks of arriving in Australia to confirm their identity. The first six weeks in Australia is the cut-off date. If an international student goes to the bank to open a bank account within six weeks of his/her arrival, the Australian bank will only require a passport as proof of identity. If the six weeks is exceeded, the bank will only open a bank account for the student if the total score of the documents presented reaches 100 points according to the bank’s regulations.
What If the Six Weeks is Exceeded?
Find out what score the bank requires for each type of document or certificate.
Ensure your documents reach 100 points before you go to the bank to open an account.
Check the bank’s regulations on the score of documents; you can check the official website of each bank.
Australian Bank Charges
Australian banks charge fees for savings accounts, but many are free for international students. You are not exempted from the fee if you are on a working holiday visa.
Australia Mobile Banking App
As in China, almost every bank has its mobile phone App; we suggest that you download a mobile phone App as soon as possible after the successful opening of the account associated with their accounts. You can check your balances and bank transactions, etc. in a timely manner. If you need to transfer money to someone else, you can do it on your mobile phone by entering the other party’s BSB code and account.
How Can I Use My Bank Card Safely?
When you get your card, you should protect your card number and the CVV number on the back (the last three digits of a line of numbers), and don’t tell anyone. In Australia, if you have your card number and CVV number, you can use your card to make purchases online! If you find that your money has been stolen from your card, contact your bank as soon as possible.
Are Bank Account Numbers and Bank Card Numbers the Same Thing?
Many newcomers to Australia confuse bank account numbers with card numbers, but they are not the same thing.
Account number: It is the number of the account you open in the bank; you can find it in the email after opening the account online; if you go to the bank to open the account by yourself, the bank will print it out on the spot for you; CBA’s account number usually has eight digits, which will be used when someone transfers money to you.
Card number: This is the number on the front of your card, usually 16 digits, which you must fill in when you buy and pay for something online. You can have multiple cards under a bank account, such as a debit or credit card, with different card numbers.
