How to open a bank account in Australia

Opening a bank account in Australia is a straightforward process that can often be completed in just a few minutes, either online or at a branch of your chosen provider. However, to make sure you make the right choice, it's worth investing some time in researching what different bank accounts have to offer.

Each account comes with unique features and eligibility criteria, which you should understand before committing. This guide will walk you through the process of opening a bank account, from initial research to making your first transaction.

Before opening a bank account, consider several factors that will influence your decision, ranging from practical aspects of banking to aligning with your personal values. 

Location may play a role in your decision. If you prefer the option of visiting a physical branch, you'll want to make sure there's one conveniently located near you. On the other hand, if you're comfortable with internet banking, then signing up online might be a better option due to lower bank overheads.

Many app based bank accounts now come with extra features, such as user-friendly apps, payment reminders, and spending insights. If these technological additions appeal to you, factor them into your decision-making process.

Lastly, you might want to consider whether the bank's values align with your own. Some individuals prefer to bank with institutions that prioritise ethical practices or environmental sustainability. If this is important to you, research the bank's policies and practices in these areas.

Some providers offer a variety of bank account types, each tailored to different age groups, life stages, and financial situations. 

Standard everyday bank accounts are the most common type, suitable for most adults for their day-to-day banking needs. For younger individuals, there are junior bank accounts (typically for those under 12) and youth bank accounts (usually for those under 18). These accounts often come with features designed to help young people learn about money management.

Students in tertiary education can benefit from student bank accounts, which often offer perks such as fee waivers. Similarly, pensioner bank accounts cater to those receiving a pension, often with features designed to make managing pension payments easier.

Step 1: Compare different bank accounts

The first step in opening a bank account is to search the available options. You can compare the best bank accounts in our database here.

Step 2: Choose a bank account that works for you

When evaluating bank accounts, focus on features that align with your banking needs. Consider account fees, which can often be waived if you meet certain conditions like age ranges. You may also want to check for ATM access and any bonus features like a linked high interest savings account. For frequent travelers, consider accounts with favorable terms for international transactions. By carefully weighing these factors, you can select an account that best suits your financial habits and goals.

Step 3: Check eligibility criteria

Once you've identified a suitable account, verify that you meet the eligibility criteria. While requirements can vary between institutions, general criteria for opening a bank account in Australia typically include being at least 18 years old (though many banks offer accounts for minors), having an Australian residential address, and applying for personal (not business) banking needs.

If you're not an Australian citizen or permanent resident, there may be additional steps involved. You might need to apply in person at a branch and provide extra identification documents.

Step 4: Open the bank account

With your chosen account in mind, you can begin the application process. Many banks allow you to apply online through their website. You'll usually need to provide personal details and proof of identity, such as a passport, driver's license, or Medicare card.

If you prefer to open an account in person, visit your local branch with the necessary documents to complete the application process.

Step 5: Start using your new bank account

Once your application is approved, your bank account should be ready for use. You'll receive a welcome kit with important information about your account, including details about your linked debit card, PIN, and other security codes. Depending on how you applied, you may need to activate online and mobile banking facilities.

After set-up, you can use your account for various services, including depositing your salary, withdrawing cash from ATMs, making purchases using EFTPOS, setting up direct debits for bill payments, and conducting electronic funds transfers.

Where to compare bank accounts?

You can check out our bank account hub page if you’re still unsure which provider to sign up for. You can compare a long list of providers and features including fees and any necessary conditions.