Types of bank account
These days banks have taken on the idea of personalised banking and developed a range of bank accounts to suit the particular banking needs of their customers (or so they would have us believe!)
Here are the most common types of bank accounts:
Basic bank accounts
A basic bank account is one that you’d generally deposit your salary into and use to manage transactions like your utility bills, grocery shopping and credit card payments. Unfortunately, most bank accounts offer low or no interest on your balance. That's why it's important that you make sure you link the bank account to a high interest savings account with instant transfers.
Student bank accounts
One shiny student card can get you a reduction in monthly fees and transaction charges. Like the sound of that? Then why not check out our comfy, beery-carpeted Student Room - which hosts a student bank account comparison of its own.
Online bank accounts
Once upon a time, this was a distinct breed of bank account. Now, it tends to come as standard. Typically, an online account makes your financial life simpler by letting you transfer money, check your account statement and pay off your credit card, all from the click of a button.
Important things to look out for in a bank account
When you're choosing the best bank account for storing your money, look out for some of these key features:
Many bank accounts come with a linked Debit Card, which lets you make contactless payments under $100 wherever Visa and MasterCard are accepted. These debit cards can also be used online and overseas.
You'll be able to access your bank’s ATM network for free, but there are additional charges for using out of network ATMs. Most online banks let you use any ATM in Australia free of cost.
You can use your ATM card when you're travelling abroad but you’ll pay a higher fee for this. Overseas ATM fees vary between $3 - $5 for overseas withdrawals. Apart from these charges, you’ll also pay a foreign exchange commission of approximately 2%- 3% of the transaction amount.
Generally, banks don’t pay any interest on everyday transaction accounts and that’s why it makes sense to get a linked savings account.
All major banks in Australia offer online banking facilities. This means you can use your online account to manage your money, pay your bills, check your balance and transfer funds to other accounts on the go.
Finding the right bank account
The perfect bank account for you depends on your financial needs and habits. For instance, do you make a large number of monthly ATM and EFTPOS transactions? Do you prefer online or face to face banking? Will you deposit your salary into the bank account every month?
Based on your requirements, use Mozo's bank accounts comparison table to shortlist the account that best meets your checklist.
For instance, if you'll need to make multiple withdrawals then look for an account that gives you unlimited transactions for a low monthly fee. These days some accounts even offer unlimited transactions with no monthly fees. If you want to make purchases online, look for an account with a linked debit card.