What are the eligibility criteria for pensioner accounts?

The eligibility criteria for pensioner accounts differ between financial institutions. Some banks and financial institutions have a set age minimum limit, such as 55, 60 or 65, whilst others rely on retirement status to be eligible for pensioner concessions. Many banks require proof the person holds a concession or pension card to be able to open a pensioner or concession bank account.

Which pensions can be accepted when applying to open an account?

These are likely to vary depending on the institution you’re banking with, so it’s worth checking with them first to ensure that your payments are accepted. Eligible pensions can include: Aged pension Veteran’s Affairs pension Disability Support pension Carer Payment Widow Allowance

What if I earn more interest than the deeming rate on my savings?

If the actual interest you earn on your assets and savings is higher than the deemed interest rate, the Australian Taxation Office will consider your income earned to be the sum arrived at by deeming. This means your income won’t be factored into their calculations and you’ll simply earn it without being taxed.

Do I have to have a separate transaction account and savings account?

No – you can simply have one account which acts as a transaction account with a linked debit card but which earns you interest too. These ‘hybrid’ bank accounts for pensioners may be the best option if you require a very simple banking structure, with just one single account that does everything you need and no fees . However, such accounts don’t offer the highest interest rate on the savings you may have, so you’re swapping interest income for convenience by choosing such an account.

Do I qualify for a pensioner account if I’m under 55 but have a health care card?

Yes – some banks offer accounts for pensioners and concession card holders regardless of age. Known as concession bank accounts, they offer basic transaction account features such as a linked debit card, EFT and BPAY payment facilities plus free access to ATMs to withdraw cash. The best part is that concession bank accounts don’t charge any fees (unless the account is overdrawn, in which case some banks do charge overdrawn fees which are usually around $10 to $15).