18 Jun 2024 | 4 mins
Overview
  • Ready to set up your first bank account?
  • Here are all the things to keep in mind when choosing which one to go with.

Hasta La Vista piggy bank. You did me well, especially when I’d pocket the canteen money change mum would give me, or when I scored a crisp fifty on my birthday. You’ll be missed. But alas, it’s time to move up in the world and set up a real bank account.  

Exciting! Setting up a bank account is easy-peasy, especially after you read this article. Here, we’ll give you all the goss on what to look for in a bank, what documents you need to set it up and what account options you have. Let’s get into it. 
 

Firstly, what bank do I choose?  

There are banks up the wazoo in Australia, each with its own set of offerings. Here’s what to keep an eye out for when choosing the right one for you: 

  1. Low Fees: Common fees to watch out for include monthly maintenance fees and ATM withdrawal fees. Not a vibe. But the good news is, some banks offer fee waivers for students or young adults. 

  1. Online and Mobile Banking: You want a user-friendly online platform and a mobile app that allows you to check balances, transfer funds, and pay bills on the go.  

  1. Interest Rates on Savings Accounts: Compare the interest rates offered by different banks to help your savings grow over time. 

  1. Convenient ATM Access: Cash isn’t really king anymore, but if you still rely on it, you may want ATMs associated with your bank nearby, or at least a bank that reimburses ATM fees. 
     

Now how do I actually set up the account? 
 

To open an account, you'll need the following documents: 
 

  • Proof of identity: Either an Australian driver's license, passport, birth certificate or Medicare card. 

  • Tax File Number (TFN): You’re not required to provide a TFN to open an Australian bank account, but if you don't, the bank is required by law to withhold tax. So, you might as well. 
     

Once you have your documents in order, you can apply online, or visit the bank in person - depending on the bank's policies. It’ll be quick ‘n easy, I promise. 
 

What accounts are there?


Let’s wrap your head around the two primary account types: 
 

  1. Transaction (or everyday banking) account: This is for day-to-day transactions. Think, buying a coffee or movie tickets, transferring your mates, ongoing transactions like paying your rent or phone bill and withdrawing cash from ATM’s.  

  1. Savings account: This account is designed for long-term savings. Maybe you wanna travel, buy a car or just want money in the bank. You can also earn interest on your balance. You can easily transfer between the two accounts within seconds, especially if you realise your card just declined buying a coffee… might have to dip into the savings.  
     

You don’t have to open a savings account just now. In fact, you can open one up anytime you choose. Up to you. 

 

You’ve got your account, now what?  
 

Now it’s time to download the bank app and login. This means you can manage your accounts, make transfers and track your spending on the go. 

Some banks give you access to a digital version of your new card straight away – so you can get to spending pretty much instantly. But for other banks, you’ll need to wait for your card to arrive in the mail. 

This also could be time to figure out a budget if you’re saving for anything in particular.  

 

Budgeting is a whole other kettle of fish, but luckily for you, we have a tonne of resources over at our FinFirst Academy. You’ll come out of it as money literate as the Monopoly man. 

 

The following content has been created by Year 13 and is sponsored by Westpac.