Is a debit card linked to my bank account better than a credit card?

These two cards serve different purposes. Debit cards are easy to obtain and help you limit your spending to within your financial means by drawing directly from your bank account. Credit cards, on the other hand, are essentially a short-term loan service that allows you to make purchases with your card provider’s funds and pay them back, potentially at a high interest rate. Ultimately, it’ll depend on the context of the purchase and your financial capacity.

Can I use my bank account to write cheques?

Yes – this is called a cheque or checking account and can be included as part of your bank account package with some institutions.

Will an overdraft facility help me withdraw more than I have in my bank account?

No overdraft facilities are able to be attached to your bank account, which allows account holders to apply to access funds up to a pre-determined limit (usually $2,000). From here, the process for approval is very similar to that of a credit card or other loans and if you’re approved, you’ll be able to access your desired funds without any overdrawn fees. In this way, you’re not withdrawing more than you have; you’re making use of approved loan funds. Your bank may allow you to overdraw without going through this process, however, provided the overdrawn amount is small ($200 or less) and your account is brought back to a positive balance within 24 hours.

Is a term deposit different to a bank account?

Yes – a term deposit is a single lump sum of money that you store in an account to accrue interest over a set period of months or years. You won’t be able to touch this money during your term without incurring a fee, and potentially without providing a month’s notice prior to doing so.

Should I choose a bank account with a high introductory interest offer?

If it fits your requirements, yes – but you shouldn’t wholly base your decision around introductory offers. These rates are likely to revert to much lower or non-existent interest after the initial period ends, so you must enter the decision process with eyes to the future.

Can I open my bank account online?

Absolutely – the process for doing so is more or less the same as in person, so check out your financial institution’s website to see how you can apply online today.

Should I take out a kids’ bank account for my child?

Yes – there are plenty of safe ways to store funds for your child and make them accessible for them to spend in responsible ways. Kids’ bank account providers will usually afford parents access and control over their son or daughter’s debit card usage in the form of spending restrictions or the ability to lock their card at will. They will also likely have access to bank statements to review how their child’s money is being spent