How to pick the best everyday bank account
Here are some of the main factors to look for when deciding on the best bank account for you.
Fees and charges
Look for accounts with low or no monthly fees. Many banks offer transaction accounts without account fees, though some may require a minimum deposit to waive the fee. For example, CommBank's Smart Access account has no monthly fee if you deposit at least $2,000 each month or meet other conditions.
ATM access
Choose an account that offers free or low-cost access to a wide network of ATMs, especially if you withdraw cash regularly or live in a rural area where your own bank’s ATMs aren’t easy to find. Some privately-owned non-bank ATMs charge as much as $5 per transaction so make sure you can access your cash without being stung for it.
Online and mobile banking
Ensure the bank provides convenient and user-friendly online and mobile banking tools for managing your account on the go. Mobile apps can make banking faster and easier so it’s worth looking at banks with positive reviews about their online tools. Most apps let you transfer money, check your balance, monitor spending and access customer support.
Foreign transaction fees
If you can, look to minimise the international transaction fees that typically apply when you use a Mastercard or Visa Debit card linked to your everyday bank account for purchases or cash withdrawals in another country. These fees generally also apply if you are in Australia but make a purchase in a foreign currency. These fees typically range from 1.00% to 3.50% of the transaction or withdrawal amount in Australian dollars, but some accounts do not charge extra for international transactions.
Incentive conditions
Some bank accounts have specific criteria you must meet to access offers or perks. For example, HSBC’s Everyday Global Account currently offers 2% cashback on eligible purchases if you deposit at least $2,000 each month.
Joint account options
A joint account allows you to share access to the same account, making it easier to manage shared expenses, savings and bills. Keep in mind that joint accounts typically can’t be opened online — you’ll usually need to visit a branch in person.
Payment options
Features like Apple Pay, Google Pay, PayID, Osko, and BPAY have become popular and convenient payment options, especially for those who prefer mobile banking. These tools make it easier to pay bills, send money instantly, and make contactless payments — conveniences that could be high on your priority list.
We asked more than 1,000 Australians whether they’d consider ditching their physical debit card for a mobile wallet like Apple Pay or Google Pay.
Nearly four in 10 (38.9%) said no, preferring to stick with a physical card. About a third (34.1%) said maybe, though they still like having a card as a backup. Another 23.6% said yes, as they already make most of their purchases with their phone. Only 3.4% said they don’t use either, preferring to pay with cash.
Types of transaction accounts
Everyday
Everyday accounts are designed for day-to-day banking, allowing unlimited withdrawals, deposits, and bill payments. They usually have low fees or no fees if you meet certain conditions, like making a minimum deposit each month. These accounts often come with a Visa or Mastercard debit card for easy online purchases and payments.
High school students
Many banks offer transaction accounts for high school students, usually with no account-keeping fees. These accounts help students manage their money responsibly and learn budgeting. Some banks also offer incentives, like a cash bonus or waived monthly fee, to encourage students to open an account.
International students and recent arrivals to Australia
These accounts often have low fees and provide easy access to funds, with features like free international transfers or the ability to hold multiple currencies. Banks may also offer special documentation requirements to help newcomers set up their accounts.
Young adults and students
These accounts generally come with no account-keeping fees if you’re under the age of 30 or studying full time. They usually come with a debit card and are designed to help manage everyday expenses while studying or starting a career.
Retirees
Retirees' transaction accounts are often fee-free or have low-cost options. These accounts are suited to individuals who have stopped working and may rely on pensions or other fixed income sources. Banks may offer additional perks, such as easy access to superannuation funds, priority customer service, and special savings options.
Concession cardholders
For individuals who hold concession cards (such as pensioners or seniors), these accounts tend to have reduced fees or extra benefits. For example, fee-free withdrawals or no monthly account fees help ease financial burdens for those on fixed or limited incomes.
If you have a home loan, an offset account is another possibility for your everyday banking (depending on your mortgage). It works like a regular transaction account but helps reduce the interest charged on your mortgage by offsetting the balance in the account against your loan. Offset accounts typically come with a debit card, allowing you to make payments, transfer money, and withdraw cash from ATMs, all while saving on mortgage interest.
Transaction account vs savings account
Transaction account
Allows you to make unlimited withdrawals and deposits.
Pay bills and set up automatic direct debit payments to ensure you don’t miss due dates.
Use a debit card for purchases, both in-store and online, or add it to your mobile wallet.
Access your money easily through ATMs, in-branch or mobile banking.
Savings account
Transfer money from your transaction account into your savings account to earn interest on the balance.
Save money for short or long-term goals, with bonus interest savings accounts rewarding disciplined savers.
Money can usually only be accessed via transferring back into your transaction account.
You can set up automatic transfers from your transaction account to save regularly.
Transaction debit card vs credit card
Debit card
Use your own money from a linked transaction account to make purchases or withdrawals.
Are ideal for everyday spending, as they help you stick to your available balance and avoid debt.
Debit cards are typically easier to get, as they don’t require a credit check.
Works like a credit card for purchases, but you can generally only spend what's in your linked account, making it less likely you will overspend.
Credit card
Allows you to borrow money up to a set limit, which you pay back later, often with interest.
Some cards offer benefits like rewards or cashback but these features can encourage overspending.
Credit cards often come with additional features like travel insurance or purchase protection.
Using a credit card responsibly can help you build your credit history, which can be useful for future personal loan or mortgage applications.
Online provider, Revolut, recently launched an Australia-first way for customers to earn reward points on everyday debit card purchases – a feature usually reserved for credit cards. The program lets users earn “Revpoints,” which can be redeemed for discounted flights with partner airlines or exchanged for gift cards from participating retailers. Just remember that while you can get a debit card through Revolut, it is not currently an authorised deposit-taking institution in Australia, meaning your money is not protected in the same way as it is with a bank.
Pros and cons of transaction accounts
Pros
- Easy access to your money with unlimited withdrawals
- Convenient for daily purchases using a debit card in store or for online payments
- May be linked to other accounts, including savings, offset and home loan
- Often come with security features like fraud protection and alerts
Cons
- ATM fees may apply, especially if you don’t use your bank’s network of ATMs
- Typically, won’t earn any interest on the account’s balance
- Some accounts charge a service fee unless you deposit the minimum monthly amount or meet other criteria
- Fees usually apply for international transactions or overseas withdrawals
Although most transaction accounts don’t earn interest, it’s surprising that around a quarter of Australians (25.9%) still use them to store their savings, according to a recent Money.com.au survey. This makes transaction accounts the second most popular option for savings, behind high-interest savings accounts. While many people find them convenient for everyday use, they usually offer little to no return on savings compared to other financial products.
How to apply and open an everyday bank account
A transaction account is one of the easiest financial products to apply for, and you can usually complete the application online in as little as five minutes. If you're opening a joint account or an account for a child under 14, you'll likely need to visit a branch.
To open an everyday bank account, you’ll generally need to:
- Be an Australian resident for tax purposes with an Australian postal address.
- Provide your personal details, such as your full name, gender and date of birth.
- Verify your identity with documents like a driver’s licence, passport, Medicare card or birth certificate. If the transaction account earns interest, you may have to provide your tax file number.
