22 Sep 2023
Australia hosts more than 7.6 million migrants with a strong Bangladeshi community of 51,000 expats. Most of these expat workers continuously work hard to send money to Bangladesh from Australia to provide financial assistance to their loved ones back home. These expats form a vibrant and growing community that contributes to the cultural diversity in Australia. During their settlement in the new country, they faced numerous unique challenges, banking being one of them.
Your banking requirements may become challenging as soon as you become an expat. You might initially only have one account to manage in your home country, but that may not be enough anymore to thrive in your expat life.
By determining your financial requirements and becoming familiar with four crucial banking options for expats, you can simplify your relocation. Here are some important recommendations for choosing the right type of bank account.
First things first, create a new bank account in your new country of residence for yourself. Managing your finances and making deposits and withdrawals from a local bank account is simpler and spares you the ATM costs that are frequently incurred when making transactions from overseas accounts.
Keep an eye on any local currency fluctuations before transferring funds from your home country account to your new account. Avoid transferring a sizable sum of money into your new account if the value of the currency in Australia is drifting lower, as you can end up losing money in the long term.
You should continue to retain your Bangladeshi bank account even if you move overseas. It is simpler to pay bills, send checks, and keep up a solid credit rating in your place of origin if you have a bank account there. If you want to be able to access your bank statements online, you might need to update your account settings and change the address to a friend's or relative's address who still resides in your country. Additionally, making a money transfer from Australia to Bangladesh into your local account from Australia could save you from paying taxes.
Many simple banking operations can be completed online instead of paying a physical visit to the bank, which is especially useful if you struggle to communicate in the local language. Use online banking services to check your balance and make online or mobile check deposits. Online banking is especially useful when sending remittances back home.
For some expats, offshore banking may be beneficial if they suspect any type of economic turmoil in their host country. Offshore banking suits expats as they often have to travel to different parts of the world for work. Offshore banking puts your money in one secure location so you can travel the world while conserving your investments in one place. It also offers superior security and tax efficiency than local banks.
You should be aware that your banking approach should be different than the locals that reside along with you because of the specific unique situations that you might find yourself in often.
Finding a bank with locations in both your home country and the country where you are living abroad is one of the convenient ways to manage finances. For ex-pats whose financial lives overlap with one or more nations, this is a solid choice
For their foreign services, some international banks ask you to keep a high balance, ranging from $75,000 to $200,000 in cash and assets. A local bank account in Australia will be beneficial for you if you are just starting in your profession and investing life. However, if you are considering staying there for years to come, then definitely opt for an international bank.
Comparing using a foreign credit or ATM card to having a local bank account will result in daily savings. Your transaction costs will decrease, and you might even get free ATM transactions. However, consider what international financial services you require from your bank before selecting a branch abroad. Also, figure out the transaction costs to ensure you do not end up paying much more than you anticipated. These transaction costs include fees for online money transfers to Bangladesh from Australia, cheque deposits, and currency conversions. These charges could be per transaction or percentage-based. Learn more on how to avoid making mistakes when sending money to Bangladesh.
Additionally, banks abroad may have more lenient overdraft policies with minimal or no costs. This makes it quite simple to accumulate a sizable overdraft without realising it. Ask your bank about their overdraft policy. If they give you the option, create your overdraft at a level that suits your needs.
Often, the account you open with a foreign bank might be accessible right away. However, it's more likely that you'll have to wait before your account is active and your cash is accessible.
Why does a waiting period exist? The banks need to confirm your international identification. It may take some time for checks and balances to be completed if you are sending money internationally. The wait time for accounts for all users has increased due to developments and increased pressure on banks since 2020. In general, you can expect one to six weeks for the activation of your new account.
However, you can inquire if there is a method to expedite the opening of your new account with your new bank. Create your foreign bank account in advance of your move if you are sure about the bank you wish to choose and the date you will be relocating abroad. This way, your new account will be accessible to you at all times.
Finally, there is always an option of shifting to online remittance provider services to send money to Bangladesh for your loved ones. ACE Money Transfer offers a quick, affordable, and secure money transfer service, which is much more convenient than the option of sending remittances through banks. Sign up today and enjoy a free money transfer to Bangladesh from Australia.
I do not have a local credit history; can I still build credit in Australia as a Bangladeshi?
Yes, you can. You can easily start with a secured credit card or establish a strong rental history.
What documents do I need to open a bank account in Australia?
Generally, you'll need a valid visa, proof of address, and identification documents like a passport to get started with the banking process.
How can I transfer money back to Bangladesh with minimum fees?
It is recommended to compare international transfer services for the best exchange rates and lowest fees. ACE Money Transfer offers every amenity for ex-pats to make their money transfer convenient.
Will my credit history from Bangladesh be recognised in Australia?
In most cases, Australian credit bureaus won't consider overseas credit history, so expect a fresh start.
How long does it typically take to establish a good credit score in Australia?
Building a solid credit history may take several years of responsible financial behaviour, including timely payments and responsible credit usage.