Using the financial system in Australia may be quite confusing due to the numerous institutions and services they offer. That is why choosing the right bank to deposit your savings is extremely important. Let us take a look at the main categories of bank accounts available in Australia and decide what to choose based on your preferences. With various types of bank accounts, how do you choose? Let’s take a look!
Transaction Accounts (Everyday Accounts)
Advantages
This type of bank account gives you instant access to money using your bank card and ATMs. Some institutions also have special mobile applications that you can use to check your balance and make other necessary transactions.
Suitable for
The main purpose of these accounts is to receive your salary and pay for bills regularly.
Advice for customers
Try to avoid monthly account-keeping fees. Most of the leading banks in Australia are willing to exempt such charges in case you make regular deposits.
Savings Accounts
Types of savings accounts
To increase your capital in the most effective way possible, you can focus on high-interest accounts or linked savings accounts.
How do they function?
As a rule, such an account gives you certain bonuses in the form of a reward for storing your money there. In many cases, to receive the highest bonus rate, your money should increase each month.
Additional tips
Try to set up automatic deposits from your transaction account as soon as you start receiving salaries. It will help you increase your capital without making additional efforts.
Joint Accounts
For what purposes are they used?
These accounts may be very useful for you if you share rent or utility expenses with someone. You both can use your money for these purposes without restrictions.
Opening procedure
It is easy enough to fill out online forms or visit a branch office of a bank where you want to apply. However, communication is always the most important thing. That is why you should reach an agreement regarding general spending habits.
Student Bank Accounts
Additional features
Many Australian banks show their willingness to assist students in terms of financial support by providing an option of no monthly fees.
How to become a beneficiary
All you need to do is provide a document confirming your status as a student in an Australian educational institution.
Business Bank Accounts
Advantages of having a business bank account
The main problem that can occur during filing taxes is mixing private and business accounts. That is why it is crucial to have a special bank account.
Other benefits for businessmen and corporate owners
These accounts usually have some helpful features, such as payment facilities, convenient software, etc.
Foreign Currency Accounts
Purpose
These particular accounts are intended for those people who prefer to get salaries or other amounts in foreign currency.
Main differences
You will be completely safe from any exchange rate changes because such accounts can help you keep money in foreign currency without converting it immediately into Australian dollars.
Term Deposits (Fixed Deposits)
Characteristics
You keep your money in a bank deposit for a fixed period, ranging from one month to five years. There is also a fixed interest rate during this period.
Advantages and disadvantages
The great predictability of profit is the biggest advantage. But you will not be able to withdraw your money without paying a fine.
Choosing the Right Account
From everyday accounts to highly secured term deposits, all kinds of bank accounts are available in Australia nowadays. Evaluate your spending habits and goals in terms of saving. Always compare various offers and receive the most favourable conditions.
