How To Open A Bank Account In Australia As A Student

You learned how to calculate the area of a sphere and how to perfect the Pythagoras Theorem, but walk into a bank, and you’re completely clueless. You’re about to move to Australia and start a life from scratch - and no one has prepared you for it. But that’s where we come into the picture! We’re teaching you everything you need to know, starting with the basics - how to open a bank account. 

Every student must open a bank account in Australia to study there. Having a bank account in Australia is the easiest way for students to manage and keep track of their finances. The process of how to open an Australian bank account is pretty straightforward, so keep reading to find out if you can do it yourself. 

Open a Student Bank Account in Australia

The best part about opening a bank account in Australia is that you don’t need to be physically present to do so. You can open a student bank account online from whichever country you’re currently living in before you move. Rather than waiting in long lines to submit your documents, you can get the process started in the comfort of your own home.

Documents required to open a bank account

Banks in Australia utilise a points system for paperwork. Each document on a predetermined list is granted a specific number of points. You must provide many documents totalling 100 points to open a bank account. The government has established a system of personal identification to fight fraud.

Whether you are an Australian resident or an international student, you must submit the same type of documents to achieve 100 points. You must choose which documents to submit to open your student bank account. 

The Point System in Australia 

 Before you begin your application, it is best to keep all these documents with you to complete your process smoothly without rushing to find documents at the last minute. If you’re applying online, make sure you have soft copies ready and if you are physically going to a bank, ensure that you have all your original documents and photocopies to submit.

Documents for 70 Points (Mandatory to submit) 

You must provide a primary form of identification (Passport / Citizenship / Birth Certificate)

Documents for 40 Points (Mandatory to submit) 

• University /TAFE / College student card
• Proof of age card / Australian Drivers Licence
• Confirmation of enrolment from your education institution
• Health care card or Health insurance document 

Documents for 25 Points

Any card with your name on it:

• Store account card
• Library card
• Credit card
• Union card
• Medicare card
• Video Store Card

Other documents on which your name and address appear:

• Car registration
• Rental receipts
• Utility bill

Types of Bank Accounts in Australia 

Everyday Transaction Accounts

‍Daily withdrawals and deposits are made and taken out of everyday transaction accounts.

Pros: 

1. Accessible
2. Convenient 
3. Overdraft Facilities

Cons: 

1. Zero or low-interest charges
2. Fees for extra or international transactions
3. Risk of overspending

Savings Accounts

‍Savings accounts offer a higher interest rate on your savings amount than transaction accounts do.

Pros:

1. Higher Interest Rates
2. Safe and Secure
3. Easy Access to Funds

Cons:

1. Limited Transactions
2. Lower Liquidity
3. Minimum Balance Requirement‍

Credit Card Accounts‍

Accounts with credit cards: Similar to other nations, these let you access money that isn't instantly available.

Pros:

1. Extremely convenient to manage
2. Build Credit History for further loans
3. Rewards and Benefits

Cons:

1. Higher Interest Rates if balance not paid
2. Debt Accumulation
3. Impulse Spending

Foreign Currency Accounts

‍Larger banks will provide these kinds of accounts for those who continue to get income in a different currency.

Pros:

1. Currency Diversification
2. Convenient for International Transfers/ Transactions
3. Avoid Conversion Fees

Cons:

1. Exchange Rate May Fluctuate a lot
2. Limited Interest
3. Higher Account Maintenance Fees

Joint Accounts

‍Accounts that can be opened jointly with a spouse, business partner, or additional person.

Pros:

1. Shared Account Responsibility
2. Simplified Bill Payment
3. Transparency

Cons:

1. Disagreements & Conflicts
2. Privacy Concerns
3. Risk of Misuse

Term Deposits

‍Term deposits are like high-interest savings accounts, except your money is trapped in the account until a certain amount of time has elapsed.

Pros:

1. Guaranteed Returns
2. Low Risk
3. Discourages Impulsive Spending

  Cons:

1. Limited Liquidity
2. Lower Interest Rates
3. Interest Rate Risk

You may choose any of these account types, but as a student, the best type of bank account to open in Australia would be a student account.

Student Accounts‍

The majority of banks have student-specific accounts, which offer all the benefits of transaction accounts with the additional benefit of typically being fee-free for routine transactions. If you open one, you might be able to avoid monthly or yearly account fees, deposit money without being charged, or take money out of an ATM without being concerned about being charged.

Pros

1. No monthly fees
2. Parental Control
3. Discounts and Waivers

Cons

1. Age Limit with upper and lower limits
2. Limited Overdraft Facilities
3. Account Expiry

Best Student Banks in Australia

The best student banks in Australia provide flexible and affordable banking options, along with added benefits and perks to support students in their financial journey. These banks offer features such as low or no monthly fees, unlimited transactions, low credit limits, and student credit cards with no annual fees. In this way, students can easily manage their finances, build their credit history and take advantage of exclusive discounts on entertainment, travel, and more.

1. CitiBank Australia

The Citi Plus account enables fee-free banking in Australia with no monthly account fees and free ATM withdrawals inside the Citi ATM network. Its Debit MasterCard can be used to withdraw cash from ATMs worldwide and is accepted anywhere MasterCard is accepted. Australia's Citi, Westpac, St. George, Bank of Melbourne, and Bank SA ATMs all allow fee-free withdrawals.

• Monthly account fee: $5 after the first year.
• No ATM withdrawal fees at any Citibank, Westpac, or BankSA ATM in Australia, providing convenient access to cash.
• International transaction fee are waived when using the Citibank Plus Transaction Account overseas, making it a good option for international students.

Benefits for students:

• International Student Packages: CitiBank Australia offers a wide range of special packages that cater to the needs of international students in Australia. These may include reduced fees, additional services with lower charges and some specific perks.
• Global Presence: CitiBank is a globally recognized bank making it easier for students to get those financial services anywhere in the world.
• Easy International Transfers & Mobile Banking: The global presence assists in streamlining the international money transfer process and gets even more easier when it comes to all the services being available on one tap in the phone. 

2. NAB

A traditional everyday banking account is exactly what the NAB Classic Banking account is. There are no overdrafts, monthly accounts, or direct ATM fees from any rediATMs or NABs. Through phone banking and online banking, you may easily access your account. You can get a VISA debit card for free and use it to make purchases everywhere Visa is accepted. 

• No monthly account fees and unlimited transactions, providing flexibility and cost-effectiveness for students.
• Visa Debit card with contactless payment options for easy and secure payments.
• Access to exclusive student offers and discounts through the NAB Rewards program.

Benefits for students: 

• Fee Waivers: There are several fee waivers that international students can avail if they have a NAB account. This may help them get off charges on ATM withdrawals, online transfers, and international transactions.
• Student Loans and Credits Cards: NAB provides student specific loans as well and other credit card options to make it easier for students to live in Australia without having to worry about the financial constraints.
• Easy International Transfers: NAB offers a smooth transfer process for international students to get funding from their home country.

3. ANZ 

Your money is kept safe and conveniently available for day-to-day spending in the ANZ Student Access Advantage account. Due to the absence of account fees, it is the finest bank account in Australia for teenagers. To qualify, you must be enrolled full-time in school and show an ANZ representative your current student ID card at the start of each academic year. You might use your debit card to withdraw cash from an ATM abroad, but remember that there will be a $5 ATM fee and a 3% foreign exchange commission.

• No monthly account fees and free transactions, providing affordability and convenience for students.
• ANZ Falcon™ to monitor transactions and protect against fraudulent activity.
• Access to exclusive student offers and discounts through the ANZ Rewards program.

Benefits for students: 

• Banking App: The bank offers user-friendly mobile application from where they can access their student bank accounts.
• Multilingual Customer Support: ANZ provides multilingual customer support to ensure that the international student feel inclusive and understand what is being communicated on both ends.
• Student Discounts & Offers: Similar to other banks, ANZ also provides various student discounts and offers on their student bank accounts.

4. Commonwealth Bank of Australia

CBA is a popular choice for students in Australia because of its Student Options account. The account offers no monthly fees, free transactions, and a Debit Mastercard with contactless payment options. CBA also offers a Student Credit Card with low credit limits and no annual fees, which can be helpful for students looking to build their credit history.

• Complimentary access to the CommBank Youth App for easy account management and budgeting tools.
• Student Credit Card with low credit limits and no annual fees to help students build their credit history.
• Monthly account fee: $0.

Benefits for students: 

• Easy Account Opening Process: The Commonwealth Bank of Australia makes it extremely easy for students to open the student bank accounts in Australia.
• Zero Monthly Account Fee: The bank doesn’t charge any account fees on a monthly basis on student bank accounts. 
• International Money Transfer: The international students can avail the money transfer services making it easier to transfer money to and from their home countries.

5. Westpac

Westpac offers a Student Choice account with no monthly fees, free transactions, and a Debit Mastercard with contactless payment options. Additionally, Westpac offers a Student Credit Card with low credit limits and no annual fees, along with other benefits like discounted movie tickets and travel insurance.

• No monthly account fees and free transactions, providing cost-effectiveness and convenience for students.
• Debit Mastercard with contactless payment options for easy and secure payments.
• Access to exclusive student offers and discounts through the Westpac Choices Rewards program.

Benefits for students: 

• Simple Account Setup: Westpac typically ensures that the account setup is an extremely easy and smooth process for the new students for their student bank account. 
• Financial Education Resources: Westpac offers educational resources to the students to make it easier for them to manage their finances and be better at financial literacy.

Things to Consider When Opening a Bank Account in Australia

• Fees: Account fees and your ability to deposit the maximum amount each month; other fees, like those for using ATMs and making overseas transactions.

• Ease: How simple is registering and opening a student bank account in Australia? Can you do it online and before you travel to Australia?
• Mobile Banking: If you like to bank on the go, search for an account that can be handled with a mobile banking app. Your chosen bank should also have a sufficient number of branches and ATMs and easy access to the Internet and mobile banking.

5 Simple Steps to Open A Student Bank Account in Australia

The application process to open a student bank account in Australia as an international student may vary slightly from domestic students, but the general steps are:

1. Research the best student banks in Australia that cater to international students and compare their student account options.
2. Choose the bank and account that best suits your needs and preferences, considering any additional requirements for international students.
3. Gather the required documents, which may include your passport, visa, proof of enrolment in a tertiary institution, and proof of address in Australia.
4. Most banks allow you to apply online, while some may require visiting a branch in person. Follow the application process, providing your personal information and required documents.
5. After submitting your application, wait for the bank to review and approve your application. This process may take several days to a few weeks, depending on the bank's processing times.
6. Once your application is approved, activate your account by following the bank's instructions, which may involve setting up online banking and activating your debit card.

That was everything you needed to know about how to open a student bank account in Australia. As we said, the process is simple and easy to follow, and there will always be people to help you. We hope you’ve found this helpful and feel better prepared to take charge of your student finances in Australia. You can also check our blog on the best banks for International Students in Australia.