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Can foreigners open a bank account in Australia?

Peter Terlato avatar
Peter Terlato
- 6 min read
Can foreigners open a bank account in Australia?

If you’re migrating to, studying or working in Australia, you should be able to open an Australian bank account.

For the most part, opening a bank account in Australia is a relatively simple process which can be started by comparing the different types of bank accounts foreigners can open in Australia.

Once you’ve found a bank account that suits your needs, you can start the application process.

Can anyone open a bank account in Australia

As long as your banking activities aren’t breaking any domestic or international laws, most individuals can legitimately open and maintain an Australian bank account as a foreigner.

Just as Australians have offshore bank accounts for a variety of reasons, foreigners may decide to open a bank account whether living in Australia or elsewhere. Reasons may include, running a business in Australia, expanding investment and banking portfolios; and spending significant amounts of time in Australia.

If you are moving to Australia for work purposes, it’s commonplace to open a local bank account so you can receive income and pay/claim tax.

There can be legal tax benefits in holding your money in an Australian bank account but it may be sensible to consult a financial advisor that’s skilled in international banking law.

It may be possible to get by without a bank account in Australia by making only cash transactions and keeping your wealth as physical assets, such as banknotes 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 and debts, or transferring money via internet banking.

How to open a bank account in Australia

Depending on the financial institution and the type of account you choose, you may be able to apply for an Australian bank account online or over the phone before you arrive in Australia.

Your ability to open a bank account in another country will depend on a range of factors specific to the intended financial institution and country. It may be easier in some places than others.

Opening a bank account in Australia is often similar to opening an account in your home country. You’ll typically need to provide personal information such as your name, date of birth, residency address, citizenship status and occupation.

These details will need to be verified by the financial institution with whom you’re applying for an account. You’ll need to have copies of original documents that you can scan, send or post. Additionally, there may be extra layers of security, credentials or information (e.g. notarised documents, bills, payslips, bank statements) required to positively prove your identity.

You’ll want to conduct plenty of research before you decide to open any bank account. Consider the following checklist when determining if you want to open an Australian bank account:

  • Investigate the legal requirements for opening a bank account in Australia
  • Check the financial institution’s website for application details and information pertaining to foreigners
  • Have all your documentation and relevant information handy before applying for an account
  • Find out the interest rates, fees, accessibility and rules for foreign account holders
  • Decide on the type of account - an everyday account, savings account or term deposit

What are the different types of Australian bank accounts?

Bank accounts

Bank accounts, also known as transaction accounts, are intended for everyday use. When you’re paid by your employers or clients, it’s likely that the money will be deposited into your transaction account. 

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 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.

Savings accounts

A savings 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 savings account, and the longer you can leave it there, the more you may be able to grow your wealth.

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.

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 Authorised Deposit-taking Institution (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. 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 Financial Claims Scheme (FCS).

Transacting with an Australian bank account

You can generally use international money transfers to send funds from your foreign bank account/s to your Australian bank account but it’s important to check with the financial institution from where you’ll be sending funds to ensure they can process your payment.

There are often additional fees and currency exchange rates attached to these types of transfers, compared to regular domestic fund transfers. You may want to consider these costs and how they might differ bank to bank.

Once you’ve arrived in Australia, you’ll be subject to domestic banking rules and regulations. Most transactions in Australia are fee-free, depending on your financial institution. However, there are sometimes credit card fees and processing charges to be wary of when making purchases.

Don’t forget to examine your tax obligations, both in Australia and abroad, when it comes to any interest you earn.

Smart use of different banking products, from everyday bank accounts to savings accounts and term deposits, may allow you to gradually increase your bank balance over time, and help you better reach your financial goals.

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Product database updated 19 Mar, 2024

This article was reviewed by Personal Finance Editor Alex Ritchie before it was published as part of RateCity's Fact Check process.