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Sick of paying bank fees? Read on…

Sick of paying bank fees? Read on…

Fees! They’re so annoying. And if you’re not careful, they can swallow a surprisingly large share of your money.

With that in mind, you might want to think about using a bank account that not only has a $0 account-keeping fee, but also has a $0 ATM fee.

Most Australian bank accounts charge a monthly fee or an ATM withdrawal fee, and sometimes both. However, RateCity research has found some accounts that don’t charge either. Examples include:

AccountMonthly feeATM feeMax. interest rate
Macquarie Bank Transaction Account$0$0 at rediATMs0.85%
Gateway Bank Edge Account$0$0 at rediATMs0.75%
Police Bank Easy Access Account S1$0$0 at rediATMs (four free withdrawals per month)0.10%
Bank First Everyday Account S1$0$0 at CBA Group ATMs0.05%
First Option Bank Access Saver Account$0$0 at rediATMs0.05%
Heritage Bank Simply Access$0$0 at Westpac Group ATMs0.01%
RAMS Action$0$0 at Westpac Group ATMs0.01%
NAB Classic Banking$0$00.01%

Bank accounts are more about spending than saving

As the table shows, you’re not going to earn much in the way of interest with a bank account – especially a fee-free account, which is likely to have lower rates than a fee-charging account.

If you want to earn higher interest rates from your bank, you need to invest your money in a savings account or a term deposit.

Bank accounts – also known as transaction accounts – are designed to give you quick, easy access to your money, whether to fund day-to-day purchases or unexpected emergencies.

That’s why some people put a relatively small amount of money into their bank account (say, enough to cover three to six months of expenses) and invest the rest.

If you’re in that camp, you might prefer a bank account that pays less in interest but doesn’t charge fees over a bank account that pays more in interest but does charge fees.

How to switch bank accounts

Want a fee-free bank account? The good news is, switching bank accounts is easy.

First, compare bank accounts so you can find the best bank account for your situation.

Next, fill in an online application with your chosen institution. If you have identification and your contact details, the process will probably take just 10 minutes.

Finally, don’t forget to close your existing bank account so that you’re no longer charged monthly account-keeping fees.

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This article was reviewed by Product Director Liron Nehmadi before it was published as part of RateCity's Fact Check process.



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