Compare Australian Bank Accounts with Mozo

As the name indicates, a transaction account is generally used for everyday transactions while a savings account is usually set up to store funds and accumulate interest. Transaction accounts tend to have lower interest rates, however they’re more flexible in terms of being able to withdraw funds and transferring money between your own accounts or to other people. 

Typically people open both a transaction and savings account so that they keep spending money in their everyday account, while earning higher interest on the funds stashed in their savings account. Additionally, most banks allow you to set up direct debits into your savings account, where a certain amount of money at a certain time (say, when you get paid) is transferred from your transaction account to your savings account automatically. 

In most cases bank accounts (or transaction accounts) come with a debit or key card so that you are able to withdraw cash or pay using the card. To find accounts with debit cards head to our debit card comparison table. 

Also bear in mind that as digital wallets become more and more popular, many banks have launched Apple Pay, Samsung Pay and Google Pay as a payment alternative to debit cards on their bank accounts. For more information, and to find out which banks have jumped on board, check out our mobile payment guide. 

There are a few fees that you should know about before you open a bank account so that you can avoid paying too much. While basically no bank accounts have monthly account fees anymore, it’s likely you’ll come across charges like ATM withdrawal costs, transaction fees (both domestically and internationally), overdraw charges and assisted banking withdrawal fees. 

Each bank will charge different fees so it’s worth doing your research and considering what you are most likely to use the account for - for example if you foresee yourself needing to make multiple international transactions, look for an account with minimal to no international transaction fees. It’s all about saving where you can. If you need a full break down, check out our guide to bank account fees and charges. 

The key to a healthy bank balance is sticking to a budget. If you want some help working out how much you spend and how much you should have left over each month, try our handy budget calculator.

And if you are wondering if the tax man is playing fair, try our income tax calculator to work out whether you're paying too much or too little tax.

This page is about personal transaction accounts. If you're after a transaction account for your small or medium business, check out our Business Bank Accounts page.

With such a variety of high interest transaction accounts on the market right now, it's a tough call to pick the best one. Mozo provides you with all the information you need to make the right choice and nab a great deal.

High interest bank accounts do everything a normal account does, with the added benefit of giving you a high interest rate on your money. They may have conditions, such as making a minimum deposit each month, so do your homework to find the right high interest bank account for your needs.

Once you’ve done your homework and found the bank account that suits your needs, the hard work is over, opening a bank account is pretty straight forward. Make sure you fit the eligibility criteria - you’re over 18, are an Australian resident and are using the account for personal purposes (if you’re after an account for your business you’ll need a dedicated business bank account). 

Jump online or head to your local branch with all the documents you need to identify yourself. This may include a drivers licence, medicare card or your passport. Fill out any online or in-person steps you need to, like providing contact and personal details. Once you’ve done this, your bank account should become active instantly. It may take a few days before your bank or debit card arrives in the mail, but you can deposit funds into the account straight away if you wish.