As a student who will be studying in Australia, one of the preparations you need to make is to manage your finances. Besides storing money for your daily transactions, your bank account will be used to pay bills and transfer money internationally. If you’re working a part time job in Australia, your employer will also credit your salary into your bank account. 

Most banks in Australia offers student bank accounts to meet the needs of students in Australia. Some banks might offer exclusive perks for students to help them manage their finances or reduce their living cost in Australia. 

Understanding Australian Bank Accounts

In Australia, there are several bank account types:

1. Transaction account: This account is generally used for everyday banking. You use it to withdraw cash, pay your bills, and make purchases. If you have a part time job, your employer will credit your salary to this account. Banks usually provide a debit card when you open a transaction account with them. There is usually low to no interest given to you for any cash in transaction accounts. On the other hand, they also don’t charge a monthly fee if you need certain conditions, such as meeting age requirements or holding a minimum balance in your account.
2. Savings account: As the name suggests, savings accounts are designed to help you save money and accumulate interest. You usually cannot use this account to make transactions – you may lose any interest earned that month if you withdraw from the account. Conversely, you earn bonus interest for meeting certain requirements, e.g. depositing a minimum amount into the account each month. 

Depending on your needs, you may choose to only open a transaction account, or a transaction account and savings account. 

What to Consider When Choosing a Bank in Australia:

When choosing which Australian bank to open your student bank account with, you should consider the following factors:

1. Network and Coverage: For convenience, you want to choose a bank that has ATMs or a branch near your accommodation and university. Some banks may charge for withdrawals, while others only charge when withdrawing from ATMs outside of the bank’s network. Most universities also house a bank, so you may want to consider opening an account with that bank for convenience.
2. Transaction or account fees: Some banks charge a monthly fee, which can add up over time, so try to choose a bank that waives such fees for students. For international students, you want to look for a bank with low currency conversion or international transfer fees, as you’ll likely be transferring money from your home country and converting them into Australian Dollars. 

3. Account benefits: Some banks will offer cashback, while others will waive the fees for certain transactions. If you’re concerned about security or the risk of scams, you should find a bank that lets you lock your debit or credit card with an app. 

4. Bank account management: The steps to open an Australian bank account will differ between banks. For international students, you might want to consider a bank that lets you create an account before you arrive in Australia, so you spend your time on other logistical matters after reaching Australia. 

Best Banks for Students in Australia

Most people in Australia have a bank account with one of these banks:

1. Westpac
2. Commonwealth Bank (Commbank)
3. Australia New Zealand (ANZ)
4. National Australia Bank

Here is a quick comparison of the student accounts these banks offer:

1. Westpac

Account Name: Westpac Student Choice Account

Monthly fees for tertiary students: $0

Other Features/Things to Note:

• Comes with a Mastercard Debit card
• $0 international transfer fee using online banking or the Westpac App. Other fees may apply.
• Can open account 3 months before arriving in Australia.
• Student discount at select retailers

2. Commonwealth Bank (Commbank)

Account Name: Commbank Student Account

Monthly fees for tertiary students: $0

Other Features/Things to Note:

• Australia’s largest retail bank
• Can open account up to 3 months before arriving in Australia

3. Australia New Zealand (ANZ)

Account Name: ANZ Access Advantage

Monthly fees for tertiary students: $0

Other Features/Things to Note:

• Comes with a Visa Debit card
• Can open account 3 months before arriving in Australia, and activate it after you arrive.
• Opportunities to earn cashback, reducing your monthly expense

4. National Australia Bank

Account Name: NAB Classic Banking Account

Monthly fees for tertiary students: $0

Other Features/Things to Note:

• Comes with a Visa Debit card with no monthly fee
• Can bank from Australia post office
• Student discounts available
• 3% currency conversion fee
• Only able to open an account once you arrive in Australia

How to Open a Student Bank Account in Australia

For international students: if you want to set up a bank account before you arrive in Australia, you can generally do so 3 months before your arrival. Just head to the website of your preferred bank, fill up the required information and upload the necessary documents, such as your passport and birth certificate. Once you arrive in Australia, you may need to head to one of their branches to verify your identity and complete the account setup. 

Otherwise, if you are planning on opening a bank account when you arrive in Australia, prepare the necessary documents, head to your preferred bank, and follow their instructions to open an account. You may want to read up on the requirements from your preferred bank to avoid missing out on necessary documents and having to make another trip.

Conclusion

You should select a bank based on your needs and preferences. Before selecting your bank, review the terms and conditions, fees, and any offers or discounts from the bank. Alternatively, you can call or drop a message to your preferred bank; their representative will suggest the best bank account for you.