Compare some of the best bank accounts of 2024

A bank account, or everyday account, can help you manage your money easily and conveniently. We compare some of the best bank accounts in Australia to help you find the perfect fit for your needs. 

A bank account or 'transaction account' is an account opened with a provider that allows you to deposit funds, withdraw cash and pay bills. Sometimes, these are referred to as ‘everyday accounts’, because they can be used to aid you in your everyday spending, from your morning coffee to your mortgage payment. 

Bank accounts are offered by almost every financial provider in Australia, including traditional banks, credit unions, mutual banks, online providers and neobanks. 

Often, an Australian bank account will send you a debit card that can be used to withdraw cash at ATMs or pay for everyday expenses. Your debit card will generally be from one of the three main providers: Visa, Mastercard or American Express. 

While many people choose to have their salary paid automatically into their bank account, you can also deposit money manually if you choose. 

When it comes to choosing the best bank account for your financial needs, there are a few factors to look at. Here are some enviable benefits to opening a bank account, including: 

• Safety: The biggest benefit to opening a bank or transaction account is that it provides you with a safe space to store your money for convenient use. It gives you a place to deposit new funds and also helps you easily pay for your purchases. 
• Fee-free: Another key advantage to bank accounts is that they typically charge fewer fees than other financial products, such as home loans or even savings accounts. Most do not charge account-keeping fees, but you may still find some fees involved, like overdraft fees. A simple bank account comparison may help to limit the amount of fees you'll pay. 
• Easy access to cash: Bank accounts afford you easy access to cash through ATMs. Just keep an eye out for any pesky ATM fees charged by some Aussie banks. 
• Easy transfer of funds: Whether you're making a purchase via eftpos or sending money to a mate, bank accounts are one of the simplest, cost-free methods of transferring funds. Unlike credit cards, which can burden the cardholder with interest charges and fees, or savings accounts, which may reduce the high interest rate you earn if you make withdrawals, bank accounts can offer a straightforward and economical way to manage your daily transactions.
• Boosting savings: Most savings accounts are linked to a transaction account. If you're hoping to boost your rainy day fund, you may need to jump through some hoops with your linked transaction account to earn bonus interest or even an introductory rate. This could include depositing a certain amount from your bank account to the savings account each month. 
• Tracking spending: Transaction accounts are also helpful in tracking your spending. Many bank accounts allow you to view all of your recent purchases, and receive paper or electronic statements, so it’s easy to see where your money has been going. If you’re someone who tends to spend as much or more than they earn, a bank account can help you see exactly what you’re buying to help you manage your funds more carefully. 
• Fintech: Many bank account providers also take advantage of new fin-tech, such as round-up saver tools or spending trackers. You may also link your debit card to a digital wallet if your bank is compatible with this technology, including Apple Pay, Samsung Pay or Google Pay. 

You’ll find that most transaction accounts have some associated fees. These may be as small as an ATM fee that only applies when using non-affiliated ATMs, but there are other fees you should look out for. 

For instance, some transaction accounts may charge a monthly account fee, but these are relatively uncommon nowadays. If you’re looking for a low-fee account, it may be best to avoid accounts with monthly fees. 

Some bank accounts will also charge overseas fees, such as foreign transaction fees and currency conversion fees. Some providers will waive these costs, so keep this in mind if you shop on overseas websites or travel frequently. 

Other fees may include branch withdrawal fees or cheque deposit fees. Before choosing a bank account, read the product disclosure statement (PDS) for a full breakdown of any potential fees to make sure it is suited to your lifestyle and financial situation. 

There are a fair few benefits and perks to be found in bank accounts, as well as fees and costs you may want to avoid. When it comes to choosing your best option, you'll need to carefully look at your finances to see what features matter most to you.

To help in this process, ask yourself the following questions: 

1. What am I using this bank account for? 

If you're simply looking for a safe place to deposit your income, you may not want to deep dive into comparing account providers that offer all the bells and whistles. However, if you want a bank account that tracks and tags your transactions, sends you app reminders and alerts, and offers innovative fintech solutions, you may want to factor these features into your search. An Australian bank comparison using our comparison tables could help you find the account that best meets your needs. 

2. What fees may I be charged? 

As mentioned above, there are a few fees that you may be charged for your bank account. If avoiding a particular fee, such as foreign transaction fees, is important to your financial needs, consider comparing transaction fee-free options. 

3. What features are important to me?

Do you rely on contactless payments and your digital wallet most days? Do you love innovative fintech and working with online-based financial institutions? Or do you rely on face-to-face customer service and prefer to go into branches to do your banking? All of these features and behaviours matter when it comes to choosing the best bank account for you. 

4. Is my childhood bank still the best option?

It's a hard question to answer, but many Aussies get trapped in the loyalty cycle of sticking with the same bank they've been with since they were a kid for all their financial products. This is why comparing your options is invaluable in ensuring you're getting the best bank account for your financial needs. 

Typically, you’ll be required to submit forms of ID as well as personal details. If you're applying online, be sure you have access to a document scanner or scanner app. You may also be asked to sign an application that is posted to you or which you’ve printed. 

After you’ve signed the document, it should be taken to a branch of your chosen bank. Online applications vary from bank to bank, so be sure to pay special attention to your bank’s instructions as you apply. 

While bank accounts usually function similarly, there are differences between bank accounts. Finding the best bank account for you is a matter of your lifestyle and spending habits. 

One thing to consider when choosing a bank account is how convenient it is to withdraw money. Does this bank have ATMs near your home? Would it be convenient for you to seek out an ATM or bank branch for withdrawing cash? 

Knowing how and where you can get cash out could help you find the best bank accounts for your daily life. 

Another aspect to consider is online access. If you would rather deal with your finances online than inside a bank branch, then you might look for a transaction account that allows you online access. Many banks have mobile apps that allow you to view transactions, check your balance and transfer money to other accounts. 

You should also be aware of any fees that your chosen transaction account charges. You may think that the best bank accounts have zero fees, but most transaction accounts have small fees attached. Some bank accounts charge a monthly fee for the convenience of having an account; others may charge a withdrawal fee or cheque deposit fee. Some accounts also charge for paper statements, so you can save a little money by opting for online statements only.

One of the best ways to find the top bank accounts that suit your financial needs is to use comparison tables to easily compare your options. 

A comparison table, like the one on this page, helps you compare Australian banks to find the best account for your needs. It allows you to filter down your options until you get a short list of bank accounts better suited to your budget, such as accounts without a minimum account balance or accounts that allow for Apple Pay. 

You are also then able to sort your results via the maximum interest rate available if you’re interested in a bank account that offers this feature. Although savings accounts typically come with much higher interest rates. 

To further help you to find the best bank account for your financial needs, RateCity has created Real Time Ratings™: a personalised ranking system that provides a star grade out of five based on features, perks and fees.