How to Choose Bank Accounts in Australia

The TL;DR:

• Transaction account = zero fees
• Savings account = highest interest rate (even after the honeymoon period ends)
• Have at least three accounts — and hide one from yourself
• Bank loyalty is overrated. Shop around.

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💡 Nobody Switches Banks (But You Should)

A UK study found only 1.4% of people bother switching bank accounts. Most people still use their first-ever account — the one their parents opened when they were kids.

💰 This is leaving money on the table.

Banks profit from your inertia. Better accounts exist. Finding them takes 30 minutes. Do it.

🚀 Where to Start

If you’re in Australia, finder.com.au is solid for comparing accounts.

What to look for:

Account Type	Priority
Transaction	Zero monthly fees
Savings	Highest ongoing interest rate

⚠️ Check the ongoing rate, not just the introductory honeymoon rate. That 5% promo drops to 0.5% after 4 months.

💡 Close unused accounts — even a $5/month fee on an idle account is $60/year wasted.

🏦 Banks Worth Considering

I use ME Bank for both transaction and savings. ING is also solid. Both offer:

• No monthly fees (with conditions)
• Competitive interest rates
• Decent apps
• Funky card designs (if you care about that)

Check their Product Disclosure Statements for details.

🔑 The Three-Account Setup

🔑 Here’s a system that builds savings automatically:

Account 1: Primary Savings (Hidden)

• All your income goes here
• Hide this account from your banking dashboard
• Set up automatic transfers to Account 2 when you get paid

Account 2: Secondary Savings (Visible)

• This is what you “see” as available
• Money for bills and planned expenses sits here
• Earns interest on money not yet spent

Account 3: Transaction Account

• Linked to your debit card
• Keep minimal balance (~$100)
• Top up from Account 2 as needed

🧠 The psychology: If Account 1 is hidden, you feel like you only have what’s in Account 2. You spend less without trying.

📋 Example Setup

Say you earn $1,000 per fortnight:

1. $1,000 lands in Account 1 (Hidden Savings)
2. Automatic transfer moves $600 to Account 2 (Spending Savings)
3. $400 stays in Account 1 (you never “see” it)
4. Transfer to Account 3 (Transaction) as needed for purchases

✅ Result: You save 26 × $400 = $10,400/year — plus interest. Without willpower.

💻 Do You Need the Tech Gimmicks?

Some banks push:

• Pay with your watch
• Round-up savings
• AI spending insights

Most of this is marketing. The basics — low fees, high interest, automatic transfers — matter far more.

🔒 Also consider: what data are you sharing? Those slick apps often track everything. Worth thinking about.

🏁 The Takeaway

1. Shop around — loyalty doesn’t pay in banking
2. Zero fees on transaction accounts
3. High ongoing rates on savings (not just honeymoon rates)
4. Three-account system to automate savings
5. Hide your main savings from yourself

Your bank makes money from you every day. Make sure you’re getting value back.

Related guides:

• Create a household budget
• Track expenses and build a balance sheet
• Essential personal finance skills