Making the Right Choice: Choosing a Bank in Australia
As an international student, one of the most important decisions you'll make is selecting the right banking provider. This will influence how you manage your day-to-day expenses and handle your finances. Having a reliable and student-friendly banking provider is essential for a smooth experience. In this guide, I'll walk you through everything you need to know about choosing banking services as an international student in Australia so you can make an informed decision that meets your needs.
Why Should International Students Consider Local Banking Services?
Since you are going to have regular transactions in Australia, for your daily needs it’s generally better to open a local account rather than relying on a forex travel card. Some of the benefits of having a bank account include:
Keeping money for daily expenses (food, transport, rent, etc).
Receiving salary from Australian employers for casual or part-time work.
Send and receive money with friends or back home.
Understanding Your Banking Needs
Before diving into the world of banking services, you need to understand your financial needs and requirements. Consider factors such as:
Fees: Associated with transactions or account maintenance. Some banks may have overdraft rules that will charge you a fee if your balance drops a certain amount.
International transfers: Will you need to send money back home or receive funds from abroad?
ATM accessibility: Are there enough ATMs available for convenient fee-free withdrawals?
Mobile banking and Online banking capabilities: Be able to manage your finances digitally through net banking or mobile banking platforms.
Student discounts and benefits: Special offers for students in the form of reduced fees, online cashback on purchases or promo and discount codes to use with Australian retailers.
Researching Banking Services and Features
Once you've identified your banking needs, it's time to look for the available providers and compare their features and benefits. The key things to look for in the banking features are:
Monthly fees: Reduced or No account-keeping fees.
Debit card
Buy now pay later: Split your purchases and pay in instalments for purchases in-store and online.
ATM network: Number of ATMs of your chosen bank in your city and area.
Online banking (Netbanking & Mobile application)
Cardless cash: Ability to withdraw cash from an ATM without a card.
Cashback and promotional offers.
Budgeting and financial planning tools.
International transfers: Lower fees, good exchange rates and waivers.
What are the types of bank accounts
For international students, you mainly have to consider one of two accounts. There might be banks that offer regular or student accounts which fall under the following categories:
Everyday transaction account: This is also known as a checking account and comes with a debit card. It is designed for your day-to-day use for activities like online payments, withdrawals, tap and pay, transfer funds, etc.
Savings account: This is to help you save money and potentially earn good interest on the saved amount. They have a high-interest rate compared to the transaction account and have restrictions on the number of withdrawals you are allowed per month.
Top 4 Banking Services for International Students in Australia
Australia has four major banks known as the Big Four. They have a rich history and are reliable and easy to use for international students.
Other student-friendly banks
How to open a Bank Account
Once you've narrowed down your options, it's time to open your bank account. Here are the steps:
Gather required documents: Typically, you'll need your passport, visa, and proof of enrollment and documents which help you make up 100 points of ID.
Visit the bank: choose the nearest branch to your university or home to complete the account opening process. Preferably close to uni as you might be changing houses often during your study.
Complete necessary information: Fill out the required forms and provide any information needed to open your account.
Set up online banking: Once your account is open, set up online banking access to manage your account online and via mobile devices.
Managing Your Finances
After opening your bank account, it’s a good idea to stay organized and to proactively manage your finances. Here are some tips:
Track your spending regularly: Keep tabs on your expenses to avoid overspending.
Use a budget tracker: You can use the tool within your banking app to allocate money for regular expenses like your utilities, transport, mobile plan, rent, grocery, streaming services and so on.
Automatic payments: Schedule direct debit for recurring expenses such as rent, mobile plans, etc to avoid late fees.
Monitor your account: Regularly check your account balance and transactions to detect any unauthorized or fraudulent activity.