How to Compare Bank Accounts in Australia (Everyday Accounts)
Learn how to compare bank accounts in Australia: fees, features, safety and how to switch, so you stop paying fees you do not need.
By Timothy Hirou GaschereauPublished 10 min read
Knowing how to compare bank accounts in Australia sounds like it should be simple. It is not always. Banks offer dozens of accounts, each with its own fee schedule, feature list and fine print. Most people pick an account at 16, get their first job, and never look at it again. That inertia quietly costs real money.
This guide cuts through the noise: what a transaction account actually is, which fees to watch, which features are worth caring about, and how to switch without the drama. No product recommendations, just a clear framework. It is part of our compare and choose series, and it is general information only, not advice.
🎯 The essential: A transaction (everyday) account is for spending, not saving: it pays little or no interest. The biggest lever is FEES: monthly, ATM, dishonour and especially international transaction fees (often ~3%). Look for a strong app, PayID/Osko, digital wallet and card controls. Confirm the bank is an ADI so the $250,000 Financial Claims Scheme covers you. Keep savings in a separate high-interest account, and do not let inertia keep you on a fee-charging account.
What an everyday account is for (and is not)
A transaction account (everyday or cheque account) is the workhorse: where your salary lands, your bills are paid, and your debit card draws from. What it is not is a savings account: transaction accounts typically pay little or no interest, by design. The setup most personal-finance people recommend: a low-fee transaction account for daily spending, and your savings in a separate high-interest savings account.
Fees: the biggest lever
Fees are where most Australians quietly bleed money. The main ones:
- Monthly account-keeping fees: many accounts are now $0; some waive the fee if you deposit a minimum (often $1,000 to $2,000) each month. Even $5 a month is $60 a year for nothing.
- ATM fees: your own bank's ATMs are usually free; other operators' ATMs can charge a fee on top. Some digital banks rebate ATM fees anywhere.
- Overdrawn and dishonour fees: $5 to $15 per bounced payment. Some accounts simply decline instead, which is far better.
- International transaction fees: a foreign currency conversion fee (commonly ~3%) on every overseas or foreign-currency online purchase. A $500 USD flight costs an extra $15, and it adds up fast. Some accounts charge 0%.
Add up the fees you actually paid last year from your statements. Most people are surprised. Even small recurring fees compound into a meaningful annual cost, and they are the easiest money you will ever save.
Features that actually matter
- App quality: you use it daily, so it needs to be fast, reliable and clear.
- Digital wallet: Apple Pay and Google Pay are standard; their absence is a red flag.
- PayID and Osko: near-instant payments via your phone number or email, now the standard for splitting bills and getting paid back.
- Card controls: freeze and unfreeze your card in the app, and virtual card numbers for online shopping.
- Sub-accounts and round-ups: “pots” for rent, groceries and holidays, and automatic round-ups into savings, a simple budgeting boost.
- Travel-friendly: no international transaction fees and good overseas ATM access, a genuine win if you travel even once a year.
Interest and safety
Do not chase interest in a transaction account: it is almost always negligible, and that is what a high-interest savings account is for. On safety, deposits with an Australian authorised deposit-taking institution (ADI) are covered by the Financial Claims Scheme up to $250,000 per account holder, per ADI, an APRA-administered government scheme. Using a newer digital bank or neobank? Check it holds its own ADI licence (or your deposits sit under a licensed ADI); APRA publishes the full list. The FCS covers deposits, not investment products.
Big banks vs neobanks (and concession accounts)
Big banks offer branch access, broad ATM networks and mature apps, but some charge higher fees and steeper international fees. Digital banks and neobanks (online-only) often have lower or no monthly fees, no international transaction fees and slick apps, but fewer branches and sometimes smaller ATM networks. The honest question: when did you last walk into a branch? Also, many banks offer fee-free student, youth, pensioner or concession accounts, so check whether you qualify (and re-check when your circumstances change).
How to compare and switch
| What to check | What good looks like |
|---|---|
| Monthly account-keeping fee | $0 with no conditions, or waived on a low minimum deposit |
| ATM access | Large free network, or fee rebates at any ATM |
| International transaction fee | 0% (some accounts offer this) |
| App and payments | PayID, Osko, Apple/Google Pay, card controls, sub-accounts |
| Financial Claims Scheme | The bank is an ADI (confirm on APRA's list) |
| Overdrawn / dishonour fees | $0 or low, or the account simply declines |
Switching is easier than most people think: list the fees you pay now, work out the features you actually use, check for a fee-free account, compare on ASIC Moneysmart, open the new account before closing the old one, move your salary and direct debits (a government-supported switching process can help), then close the old account. It usually takes one to two pay cycles. Remember the mindset: you are trying to avoid fees, not chase interest on a transaction account.
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❓ Frequently asked questions
What is the difference between a transaction account and a savings account?
+
A transaction account is for everyday use: receiving your salary, paying bills, and spending with a debit card. It typically pays little or no interest. A savings account is for money you are not spending immediately, and it pays a higher rate. The smart move is to use both: a transaction account for daily spending, a savings account for savings.
Do transaction accounts pay interest?
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Most pay little or no interest. A handful pay a small amount, but it is rarely worth choosing an account for that reason. If you want your money to earn interest, keep it in a high-interest savings account instead.
How can I avoid bank account fees in Australia?
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First check whether you qualify for a fee-free account (student, youth, pensioner or concession). If not, look for accounts with no monthly fee, or a fee waived when you deposit a minimum each month. Compare options on ASIC Moneysmart. Many Australians pay fees they simply do not need to.
Are neobanks safe in Australia?
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They can be, but check. A neobank is safe if it holds its own ADI licence from APRA, or if your deposits are held under a licensed ADI, which means the Financial Claims Scheme covers your deposits up to $250,000. APRA publishes the full list of covered ADIs, so confirm before you deposit.
What is PayID?
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PayID links your bank account to an identifier you already know, like your mobile number or email. Instead of sharing your BSB and account number, you share your PayID, and payments made via Osko typically arrive in seconds, any time of day or week.
Is it hard to switch bank accounts in Australia?
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No. Open the new account, update your salary and direct debits, then close the old account once everything has moved. The whole process usually takes one to two pay cycles. The hardest part is deciding to do it.
Keep reading
📚 Recommended reading
The Barefoot Investor
Scott Pape
The Barefoot Investor
Scott Pape
Australia's best-selling money book ever. A simple system for accounts, budgeting, debt and a real emergency fund in one.
Making Money Made Simple
Noel Whittaker
Making Money Made Simple
Noel Whittaker
Australia's classic, comprehensive money guide covering tax, super and investing, updated for today.
Some links above are affiliate links. If you buy through them, Snowball Invest may earn a small commission at no extra cost to you. We only recommend books we'd suggest anyway.
Sources
This article is general information only, not financial advice. Fees, features and product terms change. Compare current accounts on ASIC Moneysmart, confirm the bank is an ADI, and read the terms before you switch.
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General information only. This article is educational and does not constitute personal financial advice. It does not account for your circumstances. Consider your own situation and seek advice from a licensed adviser before acting. Read our full disclaimer.
Timothy Hirou Gaschereau
Founder of Snowball Invest, not a financial adviser.
I write about what I'm learning myself, because nobody ever taught us how to take control of our own money. It's a skill, not a mystery, and it's never too late to learn it. The best day to start was yesterday, the second best is today.
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