You are likely experiencing a mixture of excitement and apprehension if you are contemplating relocating to Australia. Australia is a remarkable nation that offers a plethora of opportunities for exploration. But it is also exceedingly distant. Although it shares the same vernacular as the United Kingdom, it remains very distinct. Its seasons are even reversed! However, there is one certainty that you can count on: the procedure of opening a bank account is simple. The following is the necessary action.
What documents do I need to open a bank account?
Australian institutions implement a points-based system for documentation. Each document is assigned a specific quantity of points, and a list of documents is provided. To establish a bank account, you must submit a collection of documents that collectively accumulate to 100 points.
Are you perplexed? It is unnecessary for you to be. It is significantly simpler than it appears. The following is the list:
- 70 points for a birth certificate, passport, or citizenship certificate
- 40 points are awarded for a Commonwealth or State Government financial entitlement card, public service employee ID card, driver’s license, or shooters’ license.
- Land Rates (This pertains exclusively to householders) – 35 points
- A card that bears your identity. This could be a library card, a store account card, or a credit card – 25 points.
- – 25 points – A document that includes your name and address, such as a bank statement or utility bill
It is evident that the matter is relatively simple. It should not be difficult to accumulate the necessary 100 points, even if you are a newcomer to Australia. For instance, the sum of 110 points from your passport and driving license is more than sufficient. It is even more advantageous to establish a bank account within six weeks of arriving in Australia, as you can do so with only your passport. However, that is not the entirety of the matter.
Can I open up a bank account online?
You are not required to wait until you are physically present in Australia to establish a bank account. Select a financial institution and conduct the transaction online. The “big four” Australian banks – ANZ, Commonwealth Bank, NAB, and Westpac – all offer customized migrant banking services that enable you to establish a bank account online up to 12 months prior to your arrival.
About five to ten minutes should be required to complete the process. Nevertheless, upon your arrival in Australia, you will be required to present 100 points’ worth of documentation at your local branch. You will be able to place deposits into your account, but withdrawals will not be possible until you complete this step.
Which bank is best for my needs?
It is difficult to determine the most suitable bank for you, as this is primarily a matter of personal preference. Most institutions offer products that are broadly similar, regardless of whether you are a student, professional, or business. The majority of accounts are equally simple to establish; however, they are characterized by extremely low interest rates and a lack of additional benefits.
However, the most viable option is likely to be one of the four largest institutions in Australia, as they possess the most extensive ATM and branch networks. This is a critical factor to take into account, as we will discuss in the near future. However, prior to that, let us examine the offerings of Australia’s four largest banks.
NAB (National Australian Bank)
The National Australian Bank (NAB) is the largest bank in Australia. It operates more than 3,400 ATMs and more than 1,500 branches throughout Australia.
NAB’s classic account includes a contactless Visa debit card and is free of monthly fees. Contactless payments are permissible for purchases exceeding AUS$100. Additionally, there are no minimum deposit requirements or overdraft fees. Regrettably, NAB does not have accounts that are specifically designed for students. Nevertheless, there are three business bank accounts available for selection, contingent upon the scale of your business.
The business commonplace account is free, which is uncommon for a business bank account. Additionally, it is possible to associate your account with interest-bearing products and integrate it with prominent accounting platforms, such as Reckon and Xero.
Commonwealth Bank
The Commonwealth Bank’s Smart Access Account is designed with the needs of individuals who are new to Australia in mind. You have the option to access it online up to three months prior to your relocation and transmit funds immediately. Nevertheless, upon your arrival in Australia, you will be required to present your identification at a branch. The monthly fee for the account is AUD$4, but it is free if you deposit a minimum of AUD$2,000 each month. Additionally, you will receive a contactless MasterCard debit card.
A Student Smart Access Account is available to students. The account is accessible to both full-time and part-time students. Its benefit is that it provides a variety of discounts. You will receive a credit card at no cost for the first year, and the minimum monthly deposit and monthly charge will be waived. Furthermore, you will not be assessed any fees when you obtain a loan, and you will receive a complimentary travel money card.
Lastly, the Commonwealth Bank’s business account offers a MasterCard debit card, no minimum balance requirements, and access to linked interest-bearing products.
ANZ
You have the option to establish an ANZ bank account online up to one year prior to your relocation to Australia. The account is free for the first 12 months and will be charged AUD$5 per month thereafter.
Nevertheless, the charge will be waived if you are a full-time student, deposit a minimum of AUD$2,000 per month, or are under the age of 25. Additionally, you will receive a Visa contactless debit card.
In addition to two business bank accounts, ANZ provides a relationship manager service that is tailored to the needs of businesspeople who are new to Australia. This service is extremely beneficial if you intend to establish your own business upon your relocation to Australia.
Westpac
The first year of Westpac’s Everyday Bank Account is free, and it includes a MasterCard debit card. If you are a full-time student, it is completely free. Up to one year prior to your arrival in Australia, you may submit an online application for one.
Additionally, you may submit an application for a business bank account. These products can be linked to overdraft and interest-bearing products and begin at AUD$10 per month. In addition, you will receive a business debit Mastercard and unrestricted free electronic transactions.
What bank fees and costs do I need to plan for?
The majority of Australian banks either do not charge monthly fees or have a modest monthly fee that is waived if you deposit a minimum amount each month. The standard minimum wage in Australia is AUD$2,000, which is lower than the average Australian salary.
In the past, numerous banks only permitted a finite number of free transactions per month. This meant that any card payments or ATM withdrawals that exceeded this limit would result in a charge. Fortunately, this appears to be no longer the case, as the majority of banks now provide unlimited free transactions. Nevertheless, it is advisable to verify this to prevent any unpleasant surprises.
In any event, it is important to remember that ATM withdrawals in Australia are only free when you utilize the ATMs provided by your bank. Typically, the cost of withdrawing money from an ATM operated by another financial institution is approximately AUD$2 per transaction.
Additionally, it is important to consider that the majority of Australian bank accounts do not include overdraft facilities. Consequently, withdrawing an amount greater than the balance in your account may result in fees and charges.
Some banks do not impose overdraft fees at all, while others may opt not to do so in specific situations, such as if it is your initial time being overdrawn. Once more, it is advisable to consult your bank’s policy regarding this matter to ensure that you are aware of the implications.