Types of bank accounts

Bank account providers offer a range of accounts to suit the needs of different users. Below, we explore some of the bank account options available in Australia.

Everyday transaction accounts

Everyday transaction accounts are the most common type of bank account. They're designed for day-to-day banking needs and usually offer:

• Debit cards for EFTPOS transactions and contactless payments
• ATM access
• Online and mobile banking facilities
• BPAY for bill payments
• Direct debit capabilities.

Most transaction accounts offer low or no interest on your balance, so it's important to link them to a high-interest savings account so that you can earn better interest on any excess funds.

Pros and cons of transaction accounts

Pros:

• Easy access to your money
• Suitable for regular transactions
• Often come with useful features like mobile banking apps.

Cons:

• May come with fees (although many online banks now offer fee-free options).
• Interest rates tend to be very low.

Student bank accounts

Student bank accounts are tailored for those in full-time education. They often come with perks such as:

• Reduced or waived monthly fees
• Lower transaction charges
• Special offers or discounts on other banking products.

To be eligible, you usually need to provide proof of enrolment in a recognised educational institution.

Pensioner bank accounts

Pensioner accounts are designed for retirees or those receiving the Age Pension. These accounts often offer:

• Lower or no monthly fees
• Unlimited transactions
• Specialised customer service for seniors
• Potential for higher interest rates on linked savings accounts.

Online-only bank accounts

Most bank account providers offer banking products online nowadays and they usually come with an available app. Some of the common features are: 

• No or few physical branches
• Often lower fees due to reduced overheads
• Quick and easy account opening process.

Pros and Cons of Online Accounts

Pros:

• Convenience of banking from anywhere
• Often more competitive interest rates and lower fees
• Innovative features and user-friendly apps.

Cons:

• No face-to-face customer service
• Can be challenging for those less comfortable with tech.

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? Or do you deposit your salary into the bank account every month? Maybe international payment flexibility is a priority. 

Below are some aspects of back accounts you might want to consider:

Better interest rates with a linked savings account

Since most transaction accounts come with a savings account through an app, consider linking to a high-interest savings account.

Linked debit cards

Many accounts come with a linked debit card, allowing you to make EFTPOS transactions and contactless payments wherever Visa and Mastercard are accepted. These cards can also be used for online shopping and overseas transactions.

ATM network access and fees

Some banks offer free withdrawals from their own ATMs, while others may reimburse fees from any ATM in Australia.

International transaction capabilities

If you travel frequently or make international purchases, consider an account with good foreign transaction fees and exchange rates.

You can compare providers on our main bank account hub page or check out fee free bank accounts here.