A bank account, also called a transaction account, is the main way people receive payments, withdraw cash and make payments.
Just about everyone, from children to adults to businesses, has a bank account with a financial institution, credit union or building society.
Bank accounts are different from savings accounts in that they’re not designed to accumulate money. Instead, this is the account which you use for your everyday spending.
Popular bank accounts products
Bank accounts
Product | Account Keeping Fees | ATM Fee | Company | Maximum Interest rate | Card Type | Features | Go to site | |
|---|---|---|---|---|---|---|---|---|
$0 Monthly | $0 Over 3,000 Westpac Group ATMs |  Global Currency Account | 1.50% | MasterCard | Apple Pay Google Pay Interest rate Overseas ATM facilities Samsung Pay Linked account | More details | ||
$5* Monthly | $0 |  Access Advantage | 0.02% | Visa | Apple Pay Google Pay Interest rate Overseas ATM facilities Samsung Pay Linked account | More details | ||
$0 Monthly | $0 Over 7,000 ATMs |  Classic Banking | 0.01% | Visa | Apple Pay Google Pay Interest rate Overseas ATM facilities Samsung Pay Linked account | More details | ||
$0 Monthly | $0 Over 13,000 ATMs customers can use in Australia with no ATM fees |  Everyday Global Account | Visa | Apple Pay Google Pay Interest rate Overseas ATM facilities Samsung Pay Linked account | More details | |||
$0 Monthly | $0 Access at any ATM |  Orange Everyday | Visa | Apple Pay Google Pay Interest rate Overseas ATM facilities Samsung Pay Linked account | More details | |||
$0 Monthly | $0 Over 3,000 rediATMs |  Glide Account | Visa | Apple Pay Google Pay Interest rate Overseas ATM facilities Samsung Pay Linked account | More details |
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What is a bank account?
A bank account is an everyday account used to manage your finances. Everything from paying bills to depositing your income to withdrawing cash is managed through a bank account. Bank accounts allow you to make payments in a number of ways:
- Online shopping
- Electronic payments
- Digital wallet (e.g. Google Wallet, Samsung Pay, Apple Pay)
- ATMs
- Direct debit
- Bpay
- Branch access
- Cheques
What fees apply to bank accounts?
Fees can differ from one bank account to another, but the main ones you may incur are:
- Monthly account-keeping fees
- ATM fees (for your bank's ATMs and potentially even more for using another bank's ATMs)
- Phone banking fees
- EFTPOS fees
- Internet banking fees
- Branch fees
- Paper statement fees
- Overdraft fees (if you withdraw more than what is available in your account)
Yes, this sounds like a lot of fees, but the good news is that most banks offer a basic bank account that has:
- No account-keeping fees
- Free monthly statements
- No minimum deposit amounts
What are some tips to get the most out of a bank account?
Use a debit card over a credit card - Bank accounts usually come with debit cards, which can usually be used the same way as a credit card, both online and in-store. It’s generally a good idea to use your debit card instead of your credit card if you don’t want to be hit with interest on your purchase; when you use a debit card, you’re spending your own money rather than credit.
Be stringent with security - Unfortunately, fraudsters are quite common. Once someone has your bank account details, they could use it to spend your money. It’s worthwhile changing your codes and passwords often and avoid using predictable passwords or PINs (like your name or date of birth). Always check your bank statements to make sure you’ve been charged correctly for things, and there aren’t any charges on there that weren’t authorised by you. If there is a suspicious transaction, always contact your financial institution immediately.
Keep essential funds in your bank account - People sometimes keep large amounts of money in their bank account, which can be a mistake. It’s usually better to keep only required funds in your bank account and move larger amounts to a savings account, where they can earn interest. You generally don’t need to access large amounts day-to-day, so always budget and designate funds to where you think they best belong.
Check out online and mobile platforms - Most banks, credit unions or building societies have apps or websites for mobile banking or internet banking. These platforms allow you to do things like view your balance, pay bills and transfer money on the go.
What are the pros and cons of having multiple bank accounts?
- Different accounts for different purposes - If you like to be organised, then you may prefer having different accounts for different purposes. For example, you could have one bank account for day-to-day expenses (such as petrol and food), another account for rent or mortgage repayments and another account for your child’s pocket money. For some people, this level of organisation could be one way to budget effectively.
- Access special features and bonuses - Often, a bank, credit union or building society will offer special rewards, bonuses or benefits for opening a bank account, for example a lower introductory fee or waived account-keeping fees. Opening up more than one bank account could increase these benefits. Banks also sometimes offer package deals. For example, the bank could offer you perks if you take out multiple banking products (including a bank account). It’s important to do your research on any financial product before signing up and make sure you’re signing up to one that best suits your situation, not the one with the most attractive perks.
- Multiple bank account can just be plain confusing – If you’re not overly organised or lose track of things easily, then multiple bank accounts might not be for you. Constantly moving and sorting funds can be complicated and time-consuming. If you prefer more of a hands-off approach to your bank funds, then one bank account is probably the way to go.
- You can be hit with multiple fees – Bank accounts often come with a mixed bag of fees, from account-keeping fees and overdraft fees to ATM fees. So, having multiple bank accounts could increase your risk of paying more fees. If you’re opening multiple accounts to take advantage of features and benefits, then be aware that banks sometimes charge fees. If you’re paying this fee across multiple accounts, the benefits may not be worth it in the end.
Which bank account is the best?
Bank accounts are offered by basically every bank, credit union and building society and they’re largely the same across the board.
There is no “best” bank account for everyone, always do your research to make sure you’re getting one that suits your individual needs.
Sally is the Research Director for RateCity and a regular commentator on television and radio about personal finance matters. She is passionate about helping everyday Australians get access to affordable finance options, and helping people save money through smart budgeting and easing everyday expenses. Sally is a contributor to news outlets including Fairfax, News Ltd and Money Magazine, among others.