Australia’s best bank accounts
A transaction account is a must-have for managing your everyday banking. To help you decide which bank account is best for you, we’ve pulled together this helpful guide that explains all the key fees and features you need to consider as well as FAQs about bank accounts.
BANK ACCOUNTS INFORMATION AND RESOURCES
What is a transaction account?
A transaction account (or everyday account) is the most common type of bank account in Australia. It’s designed for regular use, such as:
- Paying bills
- Making purchases in store or online
- Receiving your salary or Centrelink payments
- Transferring money to savings accounts or term deposits
Most transaction accounts come with fee-free access to large ATM networks across Australia plus support for international payments, though fees may apply overseas.
Bank accounts with no monthly fees
Looking to avoid unnecessary costs? A bank account that doesn't charge you a regular account-keeping fee can help you keep more of your money – especially if you don’t use your account very often or want to avoid conditions like minimum deposits.
Many digital banks and even major institutions now offer fee-free accounts with features like:
- Free access to large ATM networks
- Support for Apple Pay, Google Pay and Samsung Pay
- No minimum balance requirements
- Competitive international fee structures
Just keep an eye out for any extra charges like foreign transaction fees, ATM withdrawals from machines outside supported networks, or add-on services like overdrafts.
Mobile banking and digital wallets
Aussies are increasingly managing their money through mobile banking apps and digital wallets (i.e. Apple Pay, Google Pay and Samsung Pay), rather than visiting a branch. These tools let you:
- Check balances and recent transactions instantly
- Set spending alerts and budgeting tools
- Block or unblock cards instantly
- Make contactless payments with your phone or watch
Look for a bank with a highly rated app if you're after convenience and functionality, especially if you're switching to a digital bank or neobank that don't offer in-person assistance or services.
What to consider when comparing bank accounts
Finding the best bank account in Australia depends on your spending habits and what features matter most to you. Here’s what to look for:
| Feature | What to look for | Why it matters |
|---|---|---|
| Monthly fees | Accounts with no monthly fees, or fees that are easily waived by meeting a simple condition (like depositing a minimum amount each month). | Avoids unnecessary costs that eat into your balance. |
| ATM access | A large, fee-free ATM network, which may include your bank's machines and those of the "Big Four" banks (CommBank, NAB, ANZ, Westpac). Some banks also refund ATM fees. | Allows you to withdraw cash without incurring fees. With the decline of bank-owned ATMs, this is an important consideration. |
| International fees | Accounts with low or no foreign transaction fees on purchases made overseas or online in foreign currencies. Look for banks that offer competitive currency conversion rates. | Saves you money on international travel and online shopping. |
| App features | A user-friendly app with instant notifications, spending breakdowns, budgeting tools, and card controls (like the ability to lock your card). | Provides a simple and secure way to manage your money on the go. |
| Interest on balances | Accounts that pay interest on your transaction account balance, though this is typically a low rate. | Earns you a small return on the money you keep in your everyday account. |
| Bundled savings accounts | An account that can be easily linked to a high-interest savings account. Many offer a "bonus" interest rate when you meet certain conditions, like making a minimum monthly deposit. | Helps you easily transfer money and grow your savings with higher returns. |
| Student bank accounts | Accounts with no monthly fees and flexible conditions, often designed for those under a certain age (e.g., under 30) or those with a student ID. | Caters to students' needs by providing a low-cost, convenient way to manage money while studying. |
| Bank accounts for children | Accounts that teach kids about money, often with features like parental controls, savings goals, and visual progress trackers. Some also offer a "pocket money" app and a debit card. | Allows parents to supervise their children's spending and savings, promoting financial literacy from a young age. |
How do you switch bank accounts?
Switching is easier than ever. Most banks allow for a completely online process. Simply:
1. Compare, select and apply for a new bank account that suits your needs.
2. Open the new account and make sure it's fully active (some may require ID verification).
3. Update all recurring payments, such as direct debits and income deposits.
4. Transfer your remaining funds from your old account to the new one.
5. Monitor both accounts for a short period to ensure nothing is missed.
6. Close your old account once everything's switched over (check exit fees and conditions).
Check out our Mozo Experts Choice Awards to find some of the best options available now.
Bank accounts FAQs
What’s the difference between a bank account and savings account?
Bank accounts - or transaction accounts as they’re also known - and savings accounts both fall into the category of deposit accounts, but there are key differences between them. Bank accounts are used for everyday needs like transferring money and paying bills. Plus, they’re generally the account which is linked to a debit card. As the name implies, savings accounts are used for saving money because, unlike most bank accounts, they allow you to earn interest.
Can I earn interest with a bank account?
Most bank accounts (everyday accounts) don’t pay interest. There are a handful of exceptions but if you’re looking to earn the highest interest rate possible then a bank account probably isn’t your best bet. Instead, a high interest savings account or term deposit could be a better match.
Will I get a debit card when I open a bank account?
Yes, in most cases you’ll receive a debit card when you open a new bank account. The debit card will be linked to that account and you’ll be able to see any transactions or cash withdrawals you make with the card. Plenty of banks are also making it easy for customers to pay with a virtual version of their debit cards via digital wallets such as Apple Pay, Google Pay, and Samsung Pay.
Are there bank accounts with no monthly fees?
You can reduce costs by not paying a monthly account-keeping fee. Plenty of Australian banks offer bank accounts with no monthly fees. There are even a handful of banks that won’t charge you to use your linked debit card while making transactions or withdrawing money overseas.
How do you open a bank account?
In the past, to open a bank account, you had to visit a local branch. Nowadays there are several different options to open accounts, depending on your needs. Aside from doing so in-branch, new customers can sign up for accounts online via their bank's website or mobile banking app.
Which bank account is the best?
There’s no single ‘best’ bank account to suit the needs of every Australian. If you're looking to compare standout options, consider checking out the Mozo Experts Choice Awards winners.
Are bank accounts safe?
If you’re banking with an authorised deposit-taking institution (ADI), then you will be covered under the Financial Claims Scheme (FCS), which covers up to $250,000 per account-holder, per ADI (that’s banks, building societies, or credit unions). The FCS may even cover you if your bank fails, meaning you won’t lose the money you have deposited with them (up to $250,000).
If you have a joint account, then each individual account-holder is guaranteed for $250,000 each.
Many banks have protective measures in place to ensure the security of your bank account.
How do you close a bank account?
To close your bank account, you’ll need to clear any funds out of it into a new bank account. After you’ve transferred your money across to your new account, call up or contact your bank via email, to request closure. Some banks will allow you to close your account online.
Which bank account is best for kids?
There's no 'best' account for kids. However, some banks offer dedicated children's accounts. These can be a great way to teach your kids to budget and learn the benefits of saving money. You can also compare the best kids savings accounts on Mozo's database.
Can you open a bank account with bad credit?
While a bad credit rating may make it harder to access different financial products, like loans, it probably won’t make a difference when you’re trying to open up a bank account.