MBA Australia

MBA Australia

Banks in Australia


 

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Banks in Australia are considered the top lucrative in the world. They demonstrate their affection their clients with platonic passion. Because, they are focused on improving their service in benefit of the clients, cutting off agencies and replacing them with electronic terminals and charging fees for the transactions.

Most banks in Australia are open from 9am to 5pm from Monday to Friday. Some bank branches may open on Saturdays but it is best to look on their website for their opening times, in order to you be sure. Although, in some city branches open from 8am until 6pm, Mondays to Thursdays, and until 8pm on Fridays, while in rural areas banks may open on only one or two days a week. Usually all banks are closed on public holidays. However most, building societies, bank and main post offices in Australia have 24-hour ATMs at branches for cash deposits and withdrawals, and checking account balances.

Whether you prefer to work in bank, without thinking about the hour, the best way to do banking to you is via the internet as you will have access to your account 24 hours a day, 7 days a week. You can also do banking by the phone. Generally, bank telephone enquiry lines are open from 8am  8pm, Monday to Friday.

Another service that is provided by banks in Australia is Electronic Banking, where all bank transactions are made electronically, some banks recording three-quarters of their transactions in this way. Services that Electronic banking offers are automated bill payment (BPAY), automated computer banking through dial-up services, automatic teller machines (ATMs), of which there are around 460,000 in Australia, electronic funds transfer, internet banking, smart cards, stored debt cards, telephone banking, and touch-screen customer service terminals, making more easy your transactions.

Usually banks have few waiting lines, and they don't receive bills, because many of early functions have been transferred to a computer, with voice recognition devices, which has been causing some problems of misunderstanding specially to migrants with strong accents.

Due to complaints against banks run into thousands every year, particularly with respect to excessive fees and charges was established the Australian Bankers' Association (ABA), that is a banking ombudsman to mediate in disputes between banks and their customers, which has a Code of Banking Practice that seeks to foster good relations between banks and their customers. Most Australian banks are members of the (ABA).

Opening an account

Opening a bank account in Australia is very simple. However it's recommendable you make some research about the services and fees provided by the main banks. Most of the banks provide a preferential fee to students. Even some major banks allow you to open a bank account before you travel to Australia, alternatively, you can open an account when you arrive in Australia.

To be able to open a bank account, you do not need to have any money at all. You can open as many accounts you want with $ zero. But there is a general rule to open accounts, that includes a system of points for each presented document. As shown in the following table:

Document Points Observation
  • Birth Certificate
  • Passport
    Citizenship Certificate
70 You can only get points for one item in this section
  • Drivers Licence (full / probationary / learner)
    Shooters Licence
    Public Service Employee ID card
    Commonwealth or State Government financial entitlement card (eg Pension card)
40  
  • Land Rates
35 Applies to home buyers or owners only
  • Any card on which your name appears:
    Medicare card
    Credit Card (only 1 per institution)
    Store Account card
    Video Store Card
    Library Card
    Union Card
25  
  • Documents on which your name and address appear:
    Car registration
    Utility bill
    Rental receipts
    Records of another financial institution showing you've been a member for 12 months or more
25  

Current accounts

Opening a bank account in Australia is easy, if you do so within your first 6 week of arriving in the country, you only need to provide your passport for ID.

If you plan on working in Australia, is necessary you open a bank account, there, the most of employers pay their workers by depositing workers pay directly into a bank account.

Transaction account is the most common bank account in Australia, which is a check account, this type of account, also is known as current account, provides you with ATM access, checks, an EFTPOS card, direct debit for bill payment, telephone banking and other services. Due to, generally Aussies have two bank accounts - a transaction account and savings account. The first allows them pay their debts and the second saves some money.

To open up a bank account don't forget take into account comparing fees, interest rates and services can vary widely. For people, who don't have time to go to the bank, they can also open up their account by mail, only they should provide a certified copy of their passport pages that show the expiration date, number, photo, signature and visa. Some places also require a copy of their drivers license. In addition, you will also have to provide a reference either from a reputable person or identification documents as laws require financial institutions in Australia to verify your identity.

In Australia, the bank account are classified in three types of accounts: a transaction account with cheque option, same without cheques and a savings account. It's common Aussies have two bank accounts - a transaction account and savings account.

Savings accounts

The savings account usually is used to save money for some future plans - you'll get higher interest rates than on the transaction accounts, but only if you have at least one deposit per month and no withdrawals. Besides, the amount on this account is available at any time.

Transaction Accounts

The Transaction account with cheque and without cheques are for day-to-day use (get your salary, pay your loan, power bill, bill payment, telephone banking and other services, etc.). The majority of banks offer this type with and without a cheque option, some are free of charges unless you have more than 8, 10 or 15 withdrawals per month - sometimes with a minimum balance (e.g. A$500) required in order to pay no fees.

To open up a bank account don't forget take into account comparing fees, interest rates and services can vary widely, the most important thing to know about fees are the governmental fees: You'll have to pay 6 per A$100 on every deposit made in any of your accounts (called the Financial Institution Duty or FDI)! This also applies if you transfer money between your accounts (e.g. from the transaction to the savings account). Due to some employers offers to have your salary split to several accounts. If you would like to save a certain amount of your salary every month then let your employer directly send this amount to your savings account and the remaining salary to your transaction account - this avoids you from paying the deposit fees twice and will allow you saving a little more money.

Generally, there are additional governmental fees if your account is with the cheque option! Therefore As much as possible avoid the check's account option.

More Info: Financial institutions and banks


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Money & Finance in Australia
MBA Australia