Learning about banking and different types of accounts in a foreign country can seem like a daunting task. That’s why we’ve put together this handy summary of frequently asked questions about banking in Australia. Whether you’re planning to relocate to Australia, or are already here and looking to establish yourself, we’ve got you sorted.
The two main types of bank accounts in Australia are transaction accounts and savings accounts.
In Australia, the account you use to manage your day-to-day banking is called a transaction or everyday account. In other countries it might be known as a current account or checking account. Transaction accounts are designed to give you access to your money.
You can transfer money in and out of your transaction account, set up automatic bill payments and, if you’re working, it’ll be the account your employer will most likely pay your wages into. You’ll also use this account to take care of day-to-day spending and manage your expenses.
Westpac is Australia’s first bank, and has a transaction bank account – Westpac Choice – that offers additional benefits specifically for people who have arrived in Australia in the last 12 months.
As the name suggests, savings accounts are designed to help you save money, reach your savings goals, or look after your savings.
Many savings accounts pay interest on your money. Some accounts will also pay you bonus interest if you meet certain conditions, such as making a minimum deposit each month.
Bonus saver accounts offer bonus interest rates if you meet certain conditions, such as making regular deposits and not withdrawing funds during a specific period. Some accounts with bonus incentives provide a higher interest rate when these criteria are met.
Term deposit is a type of savings account with which you lock in your money for a set period – a fixed term. In return, you receive a guaranteed interest rate. However, your funds are not accessible during the term.
Before selecting a savings account it’s important to determine your financial goals. Whether you’re saving for particular purchases, an emergency fund, or long-term financial security, your goals will influence the type of account and the strategy you should use to reach them.
No. You will need to be in Australia to open an Australian bank account with Westpac. There are, however, some steps you can take before you leave your country to ensure you’re ready.
Before you move to Australia ask your existing bank how to manage your accounts while you’re overseas and cancel any direct payments for services you no longer need, such as utilities.
Ensure you have a valid passport, and the expiry date aligns to any visa requirements. A birth certificate, driver’s licence and passport will all be useful for identification purposes.
Once you arrive in Australia you can open up a transaction account online with Westpac and deposit money straight into your new account.
You can apply online in just a few minutes. You’ll then need to verify your ID in one of our local branches.
If your account is with Westpac, and you have your identity verified within the first six weeks of arriving in Australia, you’ll need to bring the following to a local branch to have your identity verified by the bank:
If you have been in Australia for more than six weeks at the time of application, you'll also need to provide at least two forms of identification such as a passport, driver's licence, or birth certificate.
You can access your money in your transaction account through a linked debit card, ATM cash withdrawals, or using a wearable device. Here's how:
Most transaction accounts in Australia come with a linked debit card.
When you open a Westpac Choice bank account, you’ll receive a linked Debit Mastercard® that has many of the advantages of a Mastercard credit card. However, the key distinction is that you’ll be using your own money rather than borrowed money that you’ll have to repay later with a credit card.
With a Debit Mastercard, you have the flexibility to shop online or at any location worldwide where Mastercard is accepted. You can use this physical card for safe online shopping, in-store purchases, or cash withdrawals from ATMs.
A digital version of your card is accessible via the Westpac App. It has all the features of your physical card, allowing you to shop online, pay bills, make in-app purchases, set up recurring payments, and add it to your smartphone or watch’s digital wallet to shop in-store.
You can access your digital card before your physical card arrives in the mail, and you can start using it immediately and with confidence thanks to the dynamic CVC (Card Verification Code), which provides extra security by reducing the risk of fraudulent activity. The dynamic CVC is a temporary code which changes every 24 hours for security purposes.
You may call them money machines, cash machines or automated banking machines. In Australia, we keep it simple and call them ATMs (Automated Teller Machines).
Your debit card is your ticket to accessing your cash at an ATM.
Westpac’s mobile banking app also offers a Cardless Cash feature that lets you withdraw cash from select ATMs without needing your physical card. You can also use Cardless Cash to get cash to others by sending them a cash code to use at the Westpac ATM.
Here’s another Aussie acronym to add to your vocabulary – EFTPOS, which stands for Electronic Funds Transfer at Point of Sale. Although not many Aussies know that!
EFTPOS is what allows you to settle bills, or purchase goods or services using a credit or debit card at an EFTPOS terminal. Contactless technology has become the norm with many EFTPOS terminals, allowing you to pay by simply tapping your card to the terminal, no PIN required (for payments under a certain amount).
Thanks to a choice of mobile wallets, you can now carry your eligible Westpac cards on your smartphone, or payment wearables such as Fitbit Pay and Garmin Pay. Whether you’re going for a run, stopping for a coffee, or heading out for the day, you can travel light and still make on-the-go payments.
The Westpac Mobile Banking App – recently named Australia’s top banking app – is more than just a payments tool, it’s a simple way to manage your money on the go. Its dashboard has some useful budgeting tools designed to help you track your spending each month, compare your spending across categories, and follow your financial ‘ins’ and ‘outs’.
A tax file number (TFN) is a number issued by the Australian Tax Office (ATO) to identify you for tax purposes. When you start a job or open a bank account in Australia, you’ll be asked to supply your TFN. Although you’re not required to provide a TFN to open an Australian bank account, if you don’t provide your TFN, we’re required by law to withhold tax on interest earned.
It is free to apply for a TFN, and you can apply online using Individual Auto Registration (IAR). You’ll need to do this once you’re in Australia.
Fees differ between different banks and financial institutions, and specific accounts have fewer fees and features, so compare accounts, look at interest rates, and do your research.
The Westpac Choice account has a range of benefits for people who have arrived in Australia in the last 12 months. These include:
There are no account-keeping fees or monthly maintenance fees for your first year if you've arrived in Australia within the last 12 months.
Pay no international transfer fees when you send foreign currency overseas via Online Banking or the Westpac App.
Pay no ATM withdrawal fee at Westpac Group ATMs in Australia, and overseas through our Global ATM Alliance.
Whether you’re in the planning stages of moving or are already in Australia, understanding banking and types of bank accounts can make the process much more straightforward. A transaction account and a savings account are the most popular options for people who have newly arrived, providing essential financial tools to help you settle into your new life in Australia.
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 for the information to your own circumstances and, if necessary, seek appropriate professional advice.