ACE Money Transfer - Blog

Major Types Of Bank Accounts In Australia – All You Need To Know

Major Types Of Bank Accounts In Australia – All You Need To Know

03 Aug 2022


If you're planning to relocate to Australia, getting your banking in order will likely be at the top of your priority list. Getting your head around a new country's banking system to make a global money transfer back to your home can be challenging, and Australia is no exception.

Having an Australian bank account allows you to easily access your money to pay for your accommodation, tuition fees, and living expenses and allow your employer to deposit pay into your account if you choose to work. Let's explore the major types of bank accounts in Australia. 

Australian Currency

The Australian dollar is the country's currency (AUD). There are banknotes in denominations of $5, $10, $20, $50, and $100; gold-coloured coins in denominations of $1 and $2; and silver-coloured coins in denominations of 5 cents, 10 cents, 20 cents, and 50 cents. 

When you pay, prices are rounded to the nearest 5 cents (for example, $2.93 rounds to $2.95). According to WorldBank data, Australia sent nearly US$4.4 billion in remittances in 2020, which is expected to rise. 

On the other hand, Eddington believes that with 7.6 million Australian immigrants regularly sending money to their loved ones overseas, there is a strong need for international money transfer providers to be ahead of the curve when dealing with digital money.

Different Bank Accounts In Australia

Transactions Account

You may require an account to help you manage your daily banking. This type of Australian bank account is a transaction, everyday banking account, or checking account in Australia. In other countries, it may be referred to as a checking account or a current account in other countries.

These are used for everyday transactions such as shopping, bill payment, and salary deposit. Depending on the required service type, monthly fees are usually associated with transaction accounts. These fees and the number of transactions permitted per month vary by bank. Customers may be entitled to a chequebook, which may be limited to certain accounts.

Overdrafts are not automatically granted, and some banks may charge customers for using ATMs at other banks. Electronic banking services are typically available. Transaction accounts hardly derive interest.

If you are an expatriate living in a foreign land, making an online money transfer back home can be your best option. You can make instant, secure, and smooth transfers with low fees and the best exchange rates if you use ACE Money Transfer.

Savings Accounts 

These accounts mainly offer a higher interest rate than regular savings accounts. The main difference is that your money may not be as easily accessible. Different types of savings accounts differ in terms of access to your money and interest rate.

Some accounts may not allow you to use ATMs, may not have a debit card attached to them, or may lock your money away for a set period. Others may only be available online. In exchange, you will typically receive a higher interest rate.

While many savings accounts are free, you may be charged monthly maintenance fees and transfers. Furthermore, some savings accounts have account minimums and may charge a fee if the balance falls below a certain amount. 

Savings accounts are ideal for the money you know you'll need in the future, such as an emergency or vacation fund. To save for long-term goals, you may find that opening an account with a higher potential return is a better option.

Money Market Account

An Australian money market account is a savings account with extra benefits. A money market account typically pays a higher interest rate than a savings account. Some banks have a higher minimum deposit requirement for a money market account than a savings account. 

A bank may also offer a higher rate to accounts with deposits exceeding a certain threshold and a lower rate to accounts with balances below that threshold.

A money market account is neither a checking nor a savings account; however, you may consider it a mixture of both characteristics. Many accounts include checks or a debit card that can be used to make purchases. Some money market accounts may restrict the number of checks you can write each month.

If you have a large savings balance and can earn a higher interest rate on a money market account, it may be worthwhile to open one. 

A money market account with a higher interest rate than other savings accounts may be an excellent place to keep the money for a home down payment. Otherwise, a standard savings account may be the best way to transfer money internationally to your short-term needs.

Open A Bank Account In Australia

Moving to Australia can be a hectic experience, so it is best to set up your account before arriving there so that you can access your funds immediately. The procedure is as follows:

  • Most banks will let you open an account by filling out an online application form on their website. When you apply, you must provide your passport information.
  • When your application is processed and approved, you will be notified and given your new account details, allowing you to transfer funds.
  • When you arrive in Australia, you must go to your bank and show them your passport to access your money. You will also get a debit card linked to your account and be able to register for telephone and internet banking at this time.

If you prefer to wait until you arrive in Australia before opening a bank account, do so within six weeks. You must go to a bank and provide your information and passport as proof of identity. After that, they will mail you an account card.

Like many other aspects of modern life, banking in Australia has become increasingly high-tech. Not only can you access and manage your money through branches and ATMs, but also through online and mobile banking. 

These days, fingerprint login and cardless cash options allow you to access money at an ATM without needing a card. You can transfer money to your loved ones with the most convenient methods offered by ACE Money Transfer.

Final Thoughts 

In Australia, you can choose from many banks, each of which offers a variety of bank account options. It is vital to ensure that the account you select meets your needs and that you are not paying unnecessary fees. ACE is a safe choice if you're looking to send money abroad.


Tips

PREVNEXT
List of Mobile Wallets to Send Money across borders with ACE Money Transfer
Tips for Expatriates: Sending Money Online to Bangladesh from Canada

Comments