Bank accounts in Australia explained

If you’re planning on moving to Australia (or perhaps you’ve recently moved), sorting out your banking is likely to be high up on your list of things to do. Understanding the difference between a savings account and a deposit account, checking or current account and a transaction account, can be a lot to take in. Getting your head around the banking system in a new country can be confusing, so we’ve summarised some of the main points you might want to consider.

Bank accounts to help take care of your everyday banking

You'll probably need an everyday account to help manage your day-to-day banking. In Australia, this type of account is known as a transaction account or everyday banking account. In other countries it may be known as a current account or checking account.

 

Generally, everyday accounts are designed to give you ready access to your cash, via ATMs and a linked Debit Card. It may be the account you make direct deposits into, and if you’re working, it could be the account your employer pays your salary into. Many people use transaction accounts for making withdrawals, paying bills and making card purchases in-store and online. 

 

Westpac, Australia's first bank, has an everyday bank account - Westpac Choice.

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New arrivals to Australia aged 18 years or older

Simply open a new Westpac Choice account online or at a branch by 31 March 2025, and make a single deposit of $100 within 10 days of opening#.

T&Cs and eligibility criteria apply.

Find out more

Online savings accounts

Online savings accounts typically offer higher rates of interest when compared to transaction accounts and are designed to help you save money and reach your savings goals (in other countries, they may be referred to as interest checking accounts). Savings accounts may be a single or joint account, giving account access to both parties.

 

Some savings accounts may pay bonus interest as an incentive to grow your savings, provided you meet certain requirements such as depositing a minimum amount, making regular deposits, or not making any withdrawals over a set period.

 

Interest rates may include an introductory bonus rate. It’s important to check all the interest rate details and any fees and other conditions (including deposit conditions) when applying for these.
 

Term deposits

A term deposit is a type of savings account where you deposit a lump sum of money for a selected term at a fixed interest rate. 

 

Your money is less accessible during the term, and theremay be minimum balance requirements. The amount of interest earned on these accounts will depend on the length of time and applicable interest rate.

 

A term deposit may provide certainty of knowing exactly what interest will be paid on the deposit. However, there may be fees and charges associated with breaking the term early before it has matured.
 

Digital banking options

Not only can you manage and access your money through branches and ATMs or online and mobile banking, but these days there are a raft of other features available to make your banking straightforward, including retinal scan to log in.
 

When you open a Westpac Choice everyday account, you'll have access to a digital version of your card, accessible via the Westpac App. You can use your digital card to shop online, pay bills, make in-app purchases, and add it to your smartphone or watch’s digital wallet to shop in-store. 

 

To help keep your banking details secure, dynamic CVC on your digital card is a temporary Card Verification Code that changes every 24 hours. This is a different number from the CVC on your physical card but allows you to make one-off purchases in the same way, with added fraud protection. 
 

International money transfers

If you want to send money back to your home country, you can make international money transfers with Westpac. You can request international money transfers in Online Banking or the Westpac App and send money to over 200 countries in multiple currencies. When using the App or Online Banking, Westpac does not charge a fee for transfers sent in foreign currencies. 
 

Opening a bank account in Australia

Once you arrive in Australia, you can open a Westpac Choice account online or in a local branch. If you open your new account online, you may still be required to visit a branch to verify your ID.​ For a list of documents that we accept, refer to Identification Checklist. (PDF 657KB)
 

Bank in your language

Did you know, it’s possible to do your banking in a language other than English? Our telephone banking service can arrange for an interpreter if you prefer speaking in a different language. 

 

Westpac ATMs also offer nine additional languages other than English across Westpac, St.George, Bank of Melbourne and BankSA ATMs.
 

To sum up

Understanding different types of bank accounts in Australia could help you determine the most suitable one for you, your financial situation, and how you choose to manage your money. 

 

Transactional accounts can provide a straightforward option for managing and accessing your money day to day, while savings accounts may help you reach your savings goals. They are the important options for people who have newly arrived and can be practical additions to your financial toolkit.

Moving to Australia

Explore the Westpac Choice everyday account for new arrivals. 

Find out more

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Things you should know

Before making a decision about any of our products or services, please read all the terms and conditions and consider whether the product or service is right for you. Fees and charges apply and may change.

 

 

 

This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information and if necessary, seek appropriate professional advice. This includes any tax consequences arising from any promotions for investors and customers should seek independent, professional tax advice on any taxation matters before making a decision based on this information.

 

# $50 Cashback offer: Fees and charges apply. Read the  Deposit Accounts for Personal Customers Terms and Conditions (PDF 645KB) before making a decision and consider whether the product is right for you. To receive AUD$50, you must: open a new Westpac Choice account between 1 December 2024 and 31 March 2025, have never held a transaction account with Westpac before, and deposit a minimum of $100 into the new account within 10 days of account opening.  The offer is available for customers who are new to Australia   (arrived in the last 12 months) and over 18 years of age. Customers must hold a valid foreign issued identification document in our identification checklist (PDF 657KB). For joint accounts, both account holders must not have held a Westpac transaction account before. The AUD$50 promotion amount will be paid into the Customer’s Westpac Choice account within 50 days of meeting these Terms and Conditions. The Westpac Choice account must remain open during that period to receive the cashback reward. Limited to only one eligible account per eligible individual (including where it is a joint account) and paid to the Westpac Choice account that was opened first. Not available in conjunction with any other offer unless we determine otherwise. We reserve the right to withdraw, amend or extend this offer at any time. We recommend you seek an independent, professional tax advice to determine tax implications on the cashback based on your personal circumstances.