Banks and Money – Different Bank Account Types
Customers of Australian banks can choose from a wide range of bank account types. These include:
Everyday transaction accounts.
As the name suggests, these common bank accounts are used for all your daily transactions. You can typically deposit and withdraw money whenever you like, allowing you to take care of any purchases or expenses that may arise.
These accounts are very similar to transaction accounts but offer you a higher interest rate to help you boost your savings balance. You can sometimes even take advantage of bonus interest rates if you deposit a certain amount into your account on a regular basis, so it’s worth comparing what offers are available. Savings accounts typically let you access your funds whenever you wish and can be linked to your transaction account.
Credit card accounts.
Credit cards in Australia work the same as they do overseas, allowing you access to funds that might not otherwise be readily available. It’s worth researching what options are available as some cards come with low rates and low annual fees, while others offer reward programs to help you make the most of your spending.
Foreign currency accounts.
Typically offered by many of the larger banks, these accounts are designed for those who are still receiving some form of income in another currency. A foreign currency account lets you keep funds in another currency to take advantage of fluctuating exchange rates.
If you’re considering opening an account with your spouse of business partner, joint bank accounts are an option. These accounts allow anyone linked to them to make deposits and withdrawals.
These are similar to savings accounts in that they may offer a high rate of interest, but the difference is that you’re not able to access your funds while they are held in a term deposit. Instead, your funds are locked up in the account for a fixed period of time and once the account has reached maturity, you have access to the initial deposit and all the interest it has earned.