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Savings account calculator

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Term deposits calculator

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How to compare banks

Australian banks, also known as Authorised Deposit-taking Institutions (ADIs), may allow you to not only protect your wealth, but potentially grow it. Smart use of different banking products, from everyday bank accounts to saving accounts and term deposits, may allow you to gradually increase your bank balance over time, and help you better reach your financial goals.

ADIs not only include traditional banks, but also mutual banks, credit unions and some online and app-based neobanks. Different banks offer different features and benefits for their customers. When you compare banks, it’s essential to compare the value offered by these features and benefits to the costs that may be involved, and to consider which options may best suit your household’s needs.

While banks and similar financial institutions may offer home loans, personal loans, car loans, credit cards and similar financial services, the core of their business is often based around bank accounts and related products.

Bank accounts

Bank accounts, also known as transaction accounts, are intended for everyday use. You may have your own everyday transaction account, or share one with a spouse or partner as a joint account. 

When you’re paid by your employers or clients, it’s likely that the money will be deposited into your transaction account. And when you use a debit card to withdraw cash from an ATM or make a contactless (tap and go) debit card purchase, the money will likely come out of your bank account by default.

Most bank accounts are offer convenient access to your money, whether through online banking, ATMs, or by withdrawing cash from a bank branch. Some bank accounts may also offer extra features such as access to smart payment systems like Apple Pay, Samsung Pay or Google Pay, or mobile apps to help users with their budgeting and mobile banking.

However, the more features and benefits a bank account offers, the more it may potentially cost in monthly or annual fees – a more basic ‘no-frills’ bank account may charge low fees or even no fees at all.

Does everyone need a bank account?

It may be theoretically possible to get by without a bank account in Australia by making only cash transactions and keeping your wealth as physical assets, such as cash banknotes, gold bars, gems or jewellery. However, finance in Australia and around the world has become increasingly digital, making a bank account more of a necessity to conduct many types of transactions, such as preparing a direct debit for an ongoing expense, paying bills with BPay, or to transfer money via internet banking.

If you’re concerned about the safety of your money in the bank, such as what would happen to it if the bank were to suddenly collapse or go out of business, keep in mind that any money you deposit with an ADI is automatically guaranteed by the Financial Services Guarantee, up to $200,000 per person per ADI. This means that even if the worst should happen, you should be able to get your money back.

How do you compare bank accounts?

Much like other financial products, the best bank account for you may not be the best choice for the next person. Consider what you want from a bank account, what benefits are being offered, and what costs may be involved.

You can use RateCity’s comparison table to view a wide range of bank account options side by side.

Savings accounts

A saving account is a bank account that’s been optimised for saving money. Savings accounts let you earn interest on the money you deposit - the more money you can deposit in a saving account, and the longer you can leave it there, the more you may be able to grow your wealth.

When you deposit money in a savings account, you’re effectively lending this money to the bank for it to put towards providing financial services for its other customers. This means you’re entitled to receive interest payments from the bank, similarly to what you’d pay if you were to take out a loan.

Is a bank account the same thing as a savings account?

While your everyday bank account may sometimes be called a savings account (such as when you’re choosing between cheque, savings or credit accounts on an EFTPOS machine), it may not be the best available option for saving money. It’s certainly possible to save money in your everyday bank account by diligently making regular deposits and minimising withdrawals, however most regular bank accounts don’t pay interest on your savings.

How do you compare savings accounts?

Saving accounts are often compared by their interest rates – the higher the rate, the more interest you may earn from deposits in the account. However, there are other features and benefits to also consider before making an application.

Some savings accounts may charge annual or monthly admin fees – if you expect you’ll be earning less interest from your savings than you’ll be paying in fees, you may want to consider different options. Additionally, if there are terms and conditions on earning the most interest from you savings account, such as minimising withdrawals and depositing a minimum amount per month, you may not enjoy the most value if this does not suit your circumstances.  

Term deposits

A term deposit functions almost like a cross between a savings account and an investment. In this arrangement, you agree to deposit a sum of money with a bank or similar ADI for a specific length of time (or ‘term’), over which you will earn interest on your savings.

Term deposit accounts earn interest at fixed rates, so you can often calculate in advance just how much interest you can earn on a term deposit, they’re often much less risky than investing your savings in other assets, such as shares. Plus, the money you deposit will be guaranteed by the government’s FCS.

However, it’s not always easy to find a term deposit with a high interest rate, so you may not enjoy returns as high as you might with some other asset classes. And even if your lender changes its interest rates during the term, you’ll still be paid interest at the same fixed rate.

Because you agree to deposit your money for a pre-set term length, you won’t have easy access to your money if you need it in a hurry. It’s sometimes possible to end a term deposit early by giving at least a month’s notice, but you may have to pay a penalty fee and/or miss out on some or all of the interest you’d earn.

How do you compare term deposits?

The simplest way to compare different term deposit offers is by their interest rates – the higher the rate, the more you may be able to grow your wealth. Generally, longer terms mean higher interest rates.

You may also want to look into how the interest is paid on your term deposit. Interest may be paid at the end of the term (‘at maturity’) or at regular intervals (e.g. annually, quarterly, or even monthly). The interest may be deposited into a separate bank account, or it may be added to the term deposit balance, allowing you to potentially earn interest on your interest (compound interest).

It may also be worth looking at a term deposit’s rollover options. Some term deposits offer automatic rollover, where when once the term reaches maturity, it will automatically roll your balance over into another term unless you say otherwise – even if the interest rate is no longer as competitive as it used to be. Other term deposits pay out at maturity and require you to notify the bank if you want to roll your balance over.

How to compare bank interest rates

Much like with home loans and personal loans, banks base bank account interest rates on a range of factors, including the national cash rate set be the Reserve Bank of Australia (RBA). However, while borrowers often like to see interest rates decrease, as lower interest charges may help them repay their loans faster, savers often prefer to see interest rates increase, as earning more interest may help them grow their wealth faster.

When comparing bank accounts, many Australians search for the highest interest rates. However, the bank account with the highest interest rate may not always be the best bank account for you. For example, a bank account that pays a higher rate of interest but also charges higher fees or offer fewer features may not provide as much value as some other options.

What are bonus interest rates?

Some bank accounts (most typically savings accounts) offer bonus interest rates to customers who fulfil certain terms and conditions. For example, if you deposit a minimum amount of money each month, and make no withdrawals from your savings account, you may be able to earn interest on your savings at a much higher rate, and grow your wealth faster.  

If you believe that you can fulfil the requirements for a bank account’s bonus interest rates in your normal financial circumstances, you may be in a good position to enjoy the benefits of these higher rates. However, if you think you may struggle to fulfil the conditions to receive the bonus rates, you may want to consider some alternative bank account choices that could offer you more value.

How do you compare bank performance?

One of the simplest ways to estimate the value offered by a bank account is to compare the value of the perks it offers to the costs involved. The benefits may include earning interest on your savings, or access to useful financial features and benefits. The costs could involve fees or other charges, which may you may need to pay annually or when you access certain features and benefits.

What are common bank fees?

Some everyday bank accounts and savings accounts may charge an annual fee to help cover the admin costs of providing the account. The more features and benefits a bank account may include, the higher the fees may be.

There may also be fees involved when you access certain features and benefits of a bank account.

Some of the fees you may encounter include:

  • Establishment fee (paid once, when you first open an account)
  • Monthly account-keeping fee
  • EFTPOS transaction fee
  • Currency conversion fee
  • Branch cash withdrawal fee
  • Phone transaction with operator assistance fee
  • ATM withdrawal fees (such as when using an ATM outside of the bank's serviced network)

Term deposits rarely charge monthly account fees or other ongoing fees, and some are completely fee-free. However, if you exit a term deposit early you may have to pay a penalty fee as well as missing out on some of the interest earnings.  

When do mortgage payments start after settlement?

Generally speaking, your first mortgage payment falls due one month after the settlement date. However, this may vary based on your mortgage terms. You can check the exact date by contacting your lender.

Usually your settlement agent will meet the seller’s representatives to exchange documents at an agreed place and time. The balance purchase price is paid to the seller. The lender will register a mortgage against your title and give you the funds to purchase the new home.

Once the settlement process is complete, the lender allows you to draw down the loan. The loan amount is debited from your loan account. As soon as the settlement paperwork is sorted, you can collect the keys to your new home and work your way through the moving-in checklist.

Cash or mortgage – which is more suitable to buy an investment property?

Deciding whether to buy an investment property with cash or a mortgage is a matter or personal choice and will often depend on your financial situation. Using cash may seem logical if you have the money in reserve and it can allow you to later use the equity in your home. However, there may be other factors to think about, such as whether there are other debts to pay down and whether it will tie up all of your spare cash. Again, it’s a personal choice and may be worth seeking personal advice.

A mortgage is a popular option for people who don’t have enough cash in the bank to pay for an investment property. Sometimes when you take out a mortgage you can offset your loan interest against the rental income you may earn. The rental income can also help to pay down the loan.

How does it work?

For 40 hours – from 6am, 8 May to 10pm, 9 May (AEST) – a selection of home loan products from eight participating lenders will be available, with competitive low rates in addition to rate reductions, fee waivers and cashback offers.

Answer a few quick questions, such as your current interest rate and the size of your monthly repayments, and in under 60 seconds you’ll have access to some great home loan offers.

Once you’ve selected an offer that interests you, you can contact the lender with just a click. The lender soon be in touch to guide you through the refinancing process.

At this point, there’s still no obligation to switch – you’ve got 30 days to think it over and submit your application to the lender.

Can you get a chattel mortgage with bad credit?

Getting approval for a chattel mortgage with bad credit may be possible, given ‘chattel’ (usually a piece of equipment or car) is put up as security for the loan. That means if you fail to repay the loan, the creditor can recover the loaned amount by repossessing and selling the car or piece of equipment. This differs from unsecured car loans, where the asset is not tied to the loan and cannot be taken if you don’t meet the repayments. 

Why does Westpac charge an early termination fee for home loans?

The Westpac home loan early termination fee or break cost is applicable if you have a fixed rate home loan and repay part of or the whole outstanding amount before the fixed period ends. If you’re switching between products before the fixed period ends, you’ll pay a switching break cost and an administrative fee. 

The Westpac home loan early termination fee may not apply if you repay an amount below the prepayment threshold. The prepayment threshold is the amount Westpac allows you to repay during the fixed period outside your regular repayments.

Westpac charges this fee because when you take out a home loan, the bank borrows the funds with wholesale rates available to banks and lenders. Westpac will then work out your interest rate based on you making regular repayments for a fixed period. If you repay before this period ends, the lender may incur a loss if there is any change in the wholesale rate of interest.

This article was reviewed by Head of Content Leigh Stark before it was published as part of RateCity's Fact Check process.


Can you find your bank account number online?

If your bank offers online services, you should be able to find your bank account number online by logging into your account on your bank’s website and checking your details there.

Keep in mind that each type of account you have with a bank comes with a unique account number. This means if you have a bank account as well as a savings account, for example, your bank account number and your savings account number will be different.

If you don’t have access to your bank account online or can’t login, you should be able to find your account number on a mailed bank statement, if you have one.

Alternatively, you can call your bank’s customer service number or visit a branch to retrieve your account number.

How do you open a bank account in Australia?

Opening a bank account in Australia is usually a straightforward process. Some banks give you the option of opening an account online, while others require you to visit a branch.

Different bank accounts offer different features, so it’s best to compare your options to find one that suits you.

All banks require you to pass an identity check to open a bank account. Australia uses the 100-point identification system, which means you’ll need to show a number of forms of ID that, together, add up to 100 points.

Common ID types include a driver’s licence, passport, Australian visa in a foreign passport, and Australian Medicare card. You’ll find out what types of ID are accepted when you go through the sign-up process online or at a branch.

Once your account is open, you’ll be given or sent a debit card that you can use to make purchases and withdraw money from your account.

How do you transfer money from PayPal to a bank account?

Transferring money from PayPal to an Australian bank account is simple. Just follow these three steps:

  • Go to your Wallet
  • Click ‘Transfer Money’
  • Follow the instructions

The money will take three to seven business days to reach your bank account.

Once you’ve made the transfer request, it can’t be withdrawn.

How do you set up a bank account online?

Once you’ve compared bank accounts and found the right one, the process of opening a bank account online is quite simple and can be done in around 10 minutes.

To set up a bank account online, you’ll need to prove your identity and provide an approved form of ID as well as your tax file number (TFN).

If you’re a new customer of the bank, you’ll need to verify your identity and potentially upload documents before you can complete your online application.

Once your ID has been verified and you’ve set up your bank account online, you should receive your bank cards in the mail along with your PIN and any other account details.

How do I open a new bank account?

There are a number of ways to open a new bank account – online, over the phone or in the branch. The trick is to decide what type of bank account you want beforehand.

It might sound like a simple enough task, but there are literally hundreds of bank accounts to choose from. And each offer their own banking features and benefits.

A comparison site like RateCity can help you work out what bank account product matches your needs.

Once you’ve made up your mind what you want, it’s advisable to have the following information ready for the application process.

  • A couple of forms of identification (such as driver’s licence, Medicare card, passport)
  • Tax file number
  • Residential address, contact phone number and email (though email is not essential)

How do I close my bank account online?

You can usually easily open a bank account online, but you often can’t close it online.

Many banks and credit unions will only let you close an account if you go into a branch or call them on the phone.

However, some banks will let you request to close the account via your internet banking. Check your financial provider’s website for details.

Just remember: If you still have funds in the bank account, transfer them to another account, or withdraw the cash. Also, if you have any payments like direct debits going in or out of the bank account, these will also stop when you close your account.

What do I need to open bank accounts online?

Opening a bank account online is a simple process and only takes between five to 10 minutes to complete. To get started you will need a computer or smartphone with internet access.

Information to have available when you’re ready to apply is:

  • Identification (such as driver’s licence, birth certificate, passport, proof-of-age card)
  • Tax file number
  • Residential address, email and a contact number

In some cases, you might be asked to provide employment details. If you’re not able to verify your identity online, most financial institutions let you provide this in the branch at a later date.

There are some types of bank account that you can apply for only in a branch. However, most bank accounts can be applied for conveniently online.

What do I need to open a company bank account?

To open a company bank account, you will probably have to provide 100 points of ID, an ABN and an ACN. You will probably have to provide the details of all signatories as well.

Can I open a bank account in another country?

Despite having a bad rap for facilitating tax evasion, it is possible and legal to open a bank account in another country, also known as an ‘offshore account’.

Some people choose to open a bank account in another country to invest overseas, for higher interest-earning potential or to access foreign banking services.

The process for opening an offshore bank account differs depending on the financial institution and country in which you’re opening the account.

Typically, you will need to provide identification such as a passport, a local bank statement and a signed declaration proving the source of the money being used to open your account. Usually, deposits into offshore accounts can be made by international money transfer.

Can I start a bank account online?

Yes, most lenders that operate in Australia will let you set up a bank account online. The process is usually simple and takes five to 10 minutes. You will probably need to provide a passport or birth certificate, as well as a driver’s licence, Medicare card or another form of secondary identification. Requirements differ from lender to lender, so some institutions might ask for more or different forms of ID.

Can you deposit money into somebody else's bank account?

One of the easiest banking tasks in the world is depositing money. You can even deposit money into someone else’s bank account if you wish.

The basic information you need to deposit money into a third-party bank account is:

  • Payee’s name
  • Bank, building society or credit union (though this isn’t necessary)
  • BSB (or bank code, which is the branch identifier)
  • Account number

Including the name of the financial institution isn’t necessary – particularly with online banking – because the BSB will identify this for you.

A handy tip is to record yourself (or add a personal message) in the transaction description or reference. This will show up on the recipients account, letting them know who’s paid them the money.

How can I find bank accounts in my name?

To find ‘live’ bank accounts in your name, you’ll have to ask individual lenders, which involves contacting them one by one and proving your identity each time. To find ‘unclaimed’ bank accounts (those that have been inactive for at least seven years), you can use this website.

How do I open a bank account for a child?

There are few better ways for a child to learn about money management than through savings. And there’s a plethora of bank accounts designed specifically for young people and children.

A bank account for a child can be opened online, over the phone or in a branch in a few easy steps. The minimum age a child can open a bank account for themselves usually ranges between 12 and 14.

If the child is too young to open the account, you can do it for them as their legal parent or guardian. 

To do this, you would need to be over 18, have an Australian residential address and currently reside in Australia (or have proof of residency).

You would also need to provide:

  • Identification for yourself and the child
  • Your tax file number (TFN) or TFN exemption

Depending on the bank account, you might be able to choose what level of access the child has to their bank account (online and via the phone).

How can I wire money to a bank account?

You can wire money to an Australian bank account either through your own bank or by using a money transfer company such as Western Union or MoneyGram. Either way, you’ll need the other person’s name, BSB number and account number. If you use a money transfer company, you might also need to provide the recipient’s address for large payments.

Do I need to open a business bank account?

Just because you’re in business doesn’t necessarily mean you need a business bank account. You could be a sole trader not registered for GST, and use your personal bank account for business.

If you do want a business account, there are plenty of benefits attached to business transaction and savings accounts, as well as business term deposits.

There are business bank accounts designed for businesses with a high volume of transactions, and those for start-ups with a small amount of trade. You could also include an EFTPOS service with your account.

Some business bank accounts charge for the number of transactions per month, while others offer a pay-as-you-go fee structure, where you only pay fees for transactions you make.

It’s up to you whether your priority is mainly transactions, or earning the maximum amount of interest on your principal. There’s a business banking solution for you if you need one.

Can a debt collector garnish my bank account?

A debt collector can garnish your bank account, but only with a court order. This drastic action is usually taken only if you’ve ignored several notices asking you to pay the debt.

If this happens, there is nothing you can do to stop it other than immediately pay back your what you owe in full or make arrangements to pay it off in installments.

Once a garnishee order is issued, your bank will put a freeze on your account as it processes the order. This usually takes two to three days and you won’t be able to access any of your money during this time.

If you have Centrelink payments, they may be protected, depending on what the court order says.

Are bank accounts frozen when someone dies?

Yes, Australian bank accounts are frozen when someone dies. If you want to close the account of somebody who has died, you might have to provide proof of death and a copy of the will. You might also have to prove your relationship to the deceased person.

If you have a joint bank account with somebody who has died, you will generally be entitled to all the money in the account. Again, you might have to provide proof of death if you want to change the bank account from a joint account to a one-person account.

How do I transfer money from Paypal to my bank account?

Transferring cash from Paypal into your bank account is simple…if you have a Paypal account that is.

Once you’re logged into your Paypal account, the account balance will appear on your home page. Below your balance are two options:

  • Add money
  • Withdraw money

Choose option two if you want to transfer money from your Paypal account to your personal bank account.

The next screen will prompt you to either enter new bank account details or choose a bank account that’s connected to Paypal. You can always add more bank accounts to your Paypal profile.

Another way to transfer out of Paypal is by jumping to the wallet tab on the top menu, and clicking ‘transfer money’. Both options will give you the same result.

How do I open a bank account for a baby?

If you’ve just welcome a new baby into the world, congratulations. Opening a bank account for your child can be a wonderful first gift.

Before you can open your child an account, you’ll need to have a birth certificate or passport for your baby.

As the parent or guardian, you’ll also be listed as a joint holder on the account. This means you’ll need to have proof of your identification and address (a driver’s licence, passport, birth certificate or Medicare Card).

Many banks and credit unions offer baby banks accounts. Usually, you can apply online; otherwise you can head into a local branch or office with your documents.

How can you cash a cheque without a bank account?

You can cash a cheque without a bank account if you visit the bank that issued the cheque. For example, if somebody sends you a cheque from Bank X (as written on the cheque) and you visit Bank X, it’s likely that Bank X will let you cash the cheque – provided the person who wrote the cheque has enough money in their account. Bank X would probably charge you a fee for the service.