What documents will the bank need to prove I’m eligible for a no-fee account?

This will depend on your age and why you qualify for a fee-free bank account. If you’re under 16, a copy of your birth certificate should be sufficient proof to show to the bank. If you’re a student, you may need a letter of study confirmation from your university, TAFE or college to prove to the bank that you’re genuinely a student. If you’re a concession card holder, your concession card, aged pension card, health card or Department of Veterans Affairs (DVA) card will be needed. Of course, if you’re new to the bank or financial institution, you’ll also need to show 100 points of ID to prove your identity, such as your passport, driver’s licence or another form of ID which shows your photo and signature.

What payment options are available with no-fee accounts?

The good news is that no-fee bank accounts offer the same transaction options as bank accounts for which hefty fees are charged. There are also business bank accounts with no fees as well. Financial institutions don’t tend to offer ‘cut-down’ or reduced service options in return for not charging fees. A rare exception to this rule may be found in some concession bank accounts for pensioners, which are very simple transaction and savings accounts rolled into one account. In return for a basic ‘no-frills’ account through which you can do basic banking transactions and receive interest on your account balance, the interest rate offered is at the lowest end of the scale.

Are there really no-fee bank accounts with cashback offers? What’s the catch?

Yes – there are zero-fee bank accounts in Australia which also offer cashback deals. These accounts are not intended solely to entice new customers, but offer cashback offers in return for minimum deposit and transaction limits. For example, one bank offers 2% cashback on every transaction made in the month, up to a limit of $50 cashback per month. This is on the condition of a minimum of $2,000 being deposited into the account per month and at least 20 transactions being made on a linked credit or debit card.

What should I do if I see fees being charged which I don’t agree with?

The Banking Royal Commission found thousands of instances of banks charging for services they did not provide. If you notice fees or charges on your bank statement you don’t understand, you should raise an inquiry with your financial institution. Contact customer service and explain that you don’t understand why certain fees were charged and allow your bank to explain the circumstances.