Some of the key features you should think about when comparing transaction accounts are:
Fees and charges
Is there a monthly account-keeping fee? Many smaller and digital banks now offer no-fee banking, but some of the big banks in Australia still charge a monthly fee, which is typically $3 to $6 per month. This may only add up to around $60 a year, but it’s money you wouldn’t need to pay if you chose a no-fee account. Most banks offer fee-free bank accounts for children, students, pensioners and retirees. Also, keep an eye out for package offers that give you free banking if you have a home loan, or if you link a savings account or take out insurance with the same institution.
Look at other fees: are there transaction fees or a charge every time you go into a bank branch to ask for assistance? Some banks charge $2.50 for ‘teller-assisted enquiries’. This means if you bank your shop’s takings every day, you could be charged $12.50 a week just for depositing your cash. You may want to find a bank that doesn’t charge for cash deposits if you use this feature frequently.
Compare ATM accessibility and cash withdrawal charges if you often take out cash, as well as overseas transaction account charges if you frequently travel, send money abroad or buy goods internationally. Business transaction accounts tend to come with more and higher transaction fees, but some banks do charge a fee for everyday transactions on personal accounts too.
A detailed list of bank fees can usually be found on the bank’s website in their terms and conditions or on a ‘rate and fee chart’. You may have to dig around at the very end of a banking page (in the small print) to find this detailed information, as most banks don’t like to advertise the fees they charge.
Functionality
Are you an active account user or more of a ‘set-and-forget' type of customer? If you’re the former and like to monitor your account balance and be aware of when money is going in or coming out of your account, the advanced features a mobile banking app can offer may be important to you.
Some of the best transaction accounts allow you to set alerts so you receive a message whenever money goes in or out of your account. Some offer ‘auto-spending categories’, where the app automatically categorises your spending into groups and shows you how much you’ve spent in each category. Think carefully; do you need to see at a glance how much you’ve spent on takeaway food this month? If this type of detailed account information is of interest, look at the banks who advertise a wide range of features on their mobile app.
Compatibility
Look at what systems you already know and are familiar with and make sure your new transaction account will fit in. For example, if you have an iPhone, make sure the bank’s mobile app works with Apple Pay or your chosen digital wallet. Similarly, if you have a Samsung phone or smartwatch, you may need to check for Samsung Pay compatibility. If you have a preference for Visa or Mastercard, look at which type of card is supplied and linked to your new transaction account.
For a business transaction account, check that your accounting software will work with direct data feeds from your bank account of choice. There’s nothing more frustrating than setting up a new bank account only to find it’s not compatible with your existing software or accounting package.
