Bank Accounts

Make everyday banking simpler with the right transaction account for your needs.

Bank Accounts
Last Updated: 23/05/2025
Fact Checked

Your bank account is a transaction account used for managing your everyday finances, from receiving wages to paying bills. These accounts are designed for easy access to your money, whether you're withdrawing from an ATM, shopping in-store or transferring funds online.

How transaction bank accounts differ from savings accounts

There are two main types of bank accounts in Australia: transaction accounts and savings accounts. Designed for different purposes, transaction accounts are best for paying bills, shopping and receiving wages, while savings accounts are ideal for growing your savings and reaching financial goals. Here’s how they compare:

Transaction accountSavings account
Suitable forEveryday spendingSaving money and earning interest
AccessInstant access via debit card, app or ATMLimited access to encourage saving
Interest earnedUsually none or very littleInterest paid on the amount in the account, credited monthly
FeesMay include monthly fees or transaction feesMay include monthly fees or withdrawal fees

Many Australians choose to use both account types together, managing day-to-day expenses through a transaction account while setting aside funds in a savings account to earn interest. This approach makes it easier to stay on top of spending while gradually building savings. You can learn more about these two types of accounts here .

Types of transaction bank accounts

Transaction accounts come in several forms to suit different needs:

Everyday account

This is a standard transaction account used for daily spending, receiving wages and paying bills. Funds are easy to access via a debit card, mobile banking app or ATM withdrawals. This type of account is accessible by most people, and may offer special conditions – such as waived fees – for certain users like students and young adults.

Business account

If you’re a business owner, a business account helps manage company income and expenses separately from personal finances. These accounts often include features tailored for business use, such as invoicing tools or integration with accounting software.

Kids’ account

Designed for children and teens, kids’ bank accounts offer limited access and parental oversight to help them learn how to manage money. These often come with no fees and low transaction limits.

Joint account

A joint account allows two or more people, such as partners or housemates, to share access to the same funds. It’s ideal for managing shared expenses like rent, groceries or bills.

How to compare bank accounts

When choosing a bank account, it’s important to consider how it fits your financial habits and goals. Here are the key factors to weigh up:

  • Interest rates: while most transaction accounts don’t offer much interest – if any – some do pay a small amount on your balance. Though it won’t match the returns of a savings account, it can still give your balance a small boost over time, especially if you regularly deposit larger amounts.
  • Account fees: many banks charge a monthly account-keeping fee, often around $5. While that might seem minor, it can add up to $60 a year. Some banks waive these fees if you meet certain conditions, like depositing a minimum amount each month. Others offer truly fee-free accounts, which may be a better choice if your income varies or you can’t always meet deposit conditions.
  • Monthly deposit requirements: to avoid fees, some banks require a minimum monthly deposit—this can range from a few hundred to a few thousand dollars. If this might be hard to maintain, consider accounts with lower requirements. Missing the minimum can result in fees and even overdrawn charges if you don’t have enough in your account to cover them.
  • International transaction fees: if you travel regularly or shop from overseas websites, international transaction fees can add up quickly. Some banks offer accounts with no foreign transaction or ATM fees, which can save you money abroad.
  • Ease of access: accessibility is important, whether you prefer online banking or in-branch service, and your bank needs to serve your needs Most banks offer apps and internet banking, but if face-to-face service is necessary to you, look for banks with branches nearby and policies that let you use them freely without added costs.
  • Perks and features: many accounts come with extra benefits. These might include sign-up bonuses, cashback offers, waived fees for students or concession card holders or exclusive deals for account holders. Rewards programs may also be included, offering discounts or points for using your card.

How to open a bank account online

Opening a bank account online is quick and straightforward if you meet the eligibility criteria and have your documents ready. In most cases, the process can be completed in just a few minutes.

To be eligible, you’ll typically need to:

  • Be at least 14 years old (children under 14 need to apply in person with a parent or guardian)
  • Be an Australian resident (citizens, permanent residents and most temporary residents with a valid visa and plans to stay in Australia for six months or more are eligible)
  • Have an Australian residential address
  • Have an Australian mobile phone number
  • Verify your identity by providing two forms of ID, such as an Australian driver’s licence, Medicare card, passport or Australian birth certificate (if you don’t have these documents, or if you’re new to Australia, you may need to visit a branch to complete your application)

From here, opening your account online is simple:

  1. Complete the online application

    Provide your personal details, contact information and employment status. This part usually takes just a few minutes.

  2. Submit your proof of ID

    Upload or enter details from two accepted forms of ID to verify your identity.

  3. Verify and activate your account

    After your ID has been checked and your application approved, your account will be ready to use. You can start depositing funds immediately, even if your debit card takes a few days to arrive.

Bank account frequently asked questions

Does it cost money to open a bank account?

No – it’s typically free to open a bank account. However, some banks may charge ongoing fees, such as monthly account-keeping fees, debit card fees or ATM fees for out-of-network withdrawals.

Can I close my bank account online?

Yes – most banks allow you to close personal bank accounts online, either via their app or internet banking. This should be a relatively simple process, and you may be connected with a member of staff who can assist. Alternatively, to shut an account you can visit a branch in person or make contact over the phone.

Can I have bank accounts with different banks?

Yes – you can have multiple bank accounts in Australia with different institutions – for example, you might choose one bank for everyday spending and another for saving, depending on which offers the best rates or features. Just keep in mind it may be slightly more complex to manage.

We'd love to chat, how can we help?
By clicking "Submit", you agree to be contacted by a Savvy Agency Owner and to receive communications from Savvy which you can unsubscribe from at any time. Read our Privacy Policy.