BANKING SYSTEM IN AUSTRALIA

While migrating to Australia, it is very important to get your own bank account before or while you are in Australia. Having a bank account makes it easier for you to make financial transactions like making deposits, paying your bills online, making accounts transfer, etc. And with the latest online and mobile banking facilities, your banking options are countless.

To make it easier for you, here are few things you should know about the banking system in Australia.

BANKING SYSTEM IN AUSTRALIA

Before making a bank account, these pointers will be helpful to decide while banking facilities would suit your requirements.

When it comes to choosing your bank account type, there are quite a few options to look through. To make it easier for you, we brought together the basic and most essential types of bank accounts in Australia.

TRANSACTION ACCOUNT

Transaction Accounts are used on a daily basis to make deposits, pay bills and to manage daily or regular expenditures. This account is also known as Current Account or Checking Account in other countries. These accounts are beneficial for those who will be making a lot of funds transfer on a daily basis. Hence, there are no interests available on these accounts.

While choosing a bank for a transaction account, you should consider the following:

  • Fees and charges

  • Minimum funds/balance requirement

  • Facilities that the bank has to offer – online, mobile, ATMs, etc

  • Card facilities to make funds transfers, etc

SAVINGS ACCOUNT

Saving Accounts are mainly used as a way to earn interest for holding funds in your account. These accounts help you save your money and also increase it. These accounts are not used on a daily basis and hence have more restrictions when it comes to accessing and withdrawal of funds.

Usually, people operate their saving accounts along with their transaction account and make transfers between the two as and when required. This can be done through both online as well as mobile banking.

While choosing a bank for this account, you must compare the following:

  • Difference in interest rates that the bank has to offer

  • Introductory offers, if any

  • Fees and charges for maintenance and services

  • Facilities provided by the bank

  • Ability to link this account with other accounts and banks for easier transactions

TERM DEPOSITS

Term Deposit Accounts are mainly used for the particular amount of money that you wish to invest and earn interest rate from it. To be a term deposit account holder, you must have a particular amount of money which you wish to deposit for a fixed term or duration  at a fixed interest rate. These accounts are popular with people who can keep aside this money without feeling the need to access it before the completion of the term. Since these accounts are held for a fixed period of time, the interest rate is higher as compared to savings account.

While selecting a term deposit account, you must decide upon the time duration for which you want the deposit to be held with the bank. When you term matures, i.e. at the end of the term, you will receive your principal amount along with the interest paid on that amount.

Please note that some of these term deposits allow you to earn interest at a monthly or an annual basis. This interest can be deposited either in the same account or a completely different account (for example, savings or a transaction account). In some banks, you can also negotiate the interest rate of the term duration or amount is big.

Once you know which of these accounts suit your needs, you can apply for a bank account in Australia online or talk to one of their branch representatives over the phone. Once you know where you want to get a bank account, you have to get your documents like identification proof, etc in place.

To know more about banking system in Australia or about migrating to Australia, just fill in our FREE VISA ASSESSMENT forms and our experts at Migrate Me will get in touch with you.

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