Banking in Australia
Australia has a well-developed banking system with four major banks and numerous smaller options. Opening an account is simple, but building credit history takes time.
Opening a Bank Account
Before Arrival (up to 14 days prior):
- Commonwealth Bank and Westpac allow pre-arrival applications
- Deposit-only account until in-person verification
- Need: passport, visa details, Australian address (CBA accepts overseas address)
After Arrival (within 6 weeks):
All banks accept applications with just passport. After 6 weeks, require additional ID (driver's license, utility bill, etc.)
Major Banks Comparison
| Bank | Best For | Key Feature |
|---|---|---|
| Commonwealth Bank | Newcomers | Pre-arrival setup, largest network |
| Westpac | Newcomers | Pre-arrival setup |
| NAB | Branch service | Strong business banking |
| ANZ | International | Good for Kiwis, international transfers |
| ING | No fees | High-interest savings, ATM rebates |
| Up/Ubank | Tech-savvy | Mobile-first, no fees |
Account Types
Transaction Account (Everyday):
- Daily spending, debit card
- Most have no monthly fees
- Often includes Apple/Google Pay
Savings Account:
- Higher interest (currently 4-5% with conditions)
- Bonus interest for monthly deposits + no withdrawals
- Link to transaction account
Building Credit History
Australia doesn't use credit scores like the US. Instead, your credit file shows:
- Credit applications (hard inquiries)
- Payment history (defaults, late payments)
- Credit accounts and limits
- Court judgments and bankruptcies
Steps to build credit:
- Open bank accounts and maintain positive balances
- Pay all bills on time (utilities, phone, rent)
- Apply for a low-limit credit card after 3-6 months
- Use credit card responsibly, pay in full monthly
- Avoid multiple credit applications in short periods
Credit Cards for Newcomers
Getting a credit card takes 3-6 months of Australian income history.
Starter options:
- Bank-secured credit cards (deposit as limit)
- Low-limit cards from your bank ($500-2,000)
- Afterpay/Zip for buy-now-pay-later (easier approval)
International Transfers
| Service | Use Case | Fees |
|---|---|---|
| Wise | Regular transfers | 0.5-1% + transparent rate |
| OFX | Large amounts | Good rates, no fees over $10K |
| Banks | Convenience | $20-30 + poor exchange rate |
| Western Union | Cash pickup | Higher fees |
Important Banking Terms
- BSB: Bank State Branch number (6 digits, like routing number)
- Account Number: Your unique account (usually 8-9 digits)
- PayID: Send/receive using email or phone number
- BPAY: Bill payment system (use biller code)
- Direct Debit: Automatic bill payments from account
Pro Tips
- •Open account within 6 weeks of arrival - only need passport
- •CBA or Westpac best for pre-arrival setup
- •Use Wise or OFX for international transfers - much cheaper than banks
- •Get a credit card after 3-6 months to build credit history
- •Set up PayID for easy transfers between any Australian accounts
Have questions about banking in Australia?