Types of Bank Account

Find out about the main types of accounts available in Australia...

Transaction Accounts

These accounts, also referred to as cheque accounts, are for everyday transactions such as shopping, paying bills and depositing salary. Transaction accounts generally have monthly fees associated with them, depending on the types of service required. These fees and the number of transactions allowed per month vary according to the bank. Customers may be entitled to a cheque book, although this may only apply to specific accounts. Overdraft facilities are not automatic and some banks may charge customers for using ATMs at other banks. Electronic banking facilities are usually available. Transaction accounts rarely generate interest.

Savings/Deposit Accounts

These accounts are interest bearing. The amount of interest earned depends on the account balance; however there may be a minimum balance required to earn interest. Savings accounts can also be used for everyday banking needs such as deposits and withdrawals. Some accounts pay higher interest rates if no withdrawals are made over a certain period.

Term Deposit Accounts

Higher rates of interest are paid on these accounts compared to savings accounts. However, a minimum balance is generally required, and money must be left in an account for a certain amount of time - known as "the term". Interest rates are usually fixed and interest is paid at the end of this term.