How to open a bank account in Australia

Opening a bank account in Australia: do your research

Before you open an Australian bank account as a non-resident, make sure you do your research on all the available banks, the accounts and services that they offer. Check out comparative websites and then the specific bank’s website for the best information. Here are a few of the main things to consider as a foreigner choosing a bank account in Australia:

• Low fees. Look for an account that charges low or no account keeping fees.

• Branch access. If you'll be making regular in-branch transactions (such as depositing foreign cash or cheques), make sure you select a bank with branches in your local area. Remember, some banks are online only and have no branches.

• International transfers. If it's likely that you'll need to send money back home from time to time, check what the fees are for transferring money internationally as well as the exchange rates. Though remember WorldRemit can offer you a fast, low cost and secure way to send money to countries all over the world.

• Multiple currencies. Some bank accounts let you hold several foreign currencies in the one account, which could be useful if you go back home regularly and need the local currency there.

• Once you’ve chosen a bank and an account, check what the application process is and what documentation you’ll need such as; passport, overseas credit card/student ID and letter addressed to yourself proving Australian residence.

Can a foreigner open a bank account in Australia?

Yes, foreigners can open a bank account. Most Australian banks make it quite simple for foreigners to open a bank account in Australia - you don’t even have to be in the country to do so. Most institutions allow you to open an account via the internet or over the telephone.

You can typically open your account anywhere between three to twelve months before your arrival date. The entire process should take between five and ten minutes. However, as a new arrival applying from outside the country, you’ll need to go to your local branch in person with your ID and any other documentation once you arrive in Australia. Only once you’ve done this can you make full use of your new account.

If you wait until you are in the country to open your account and do so within six weeks of arriving, all you will require is your passport. You can forgo the 100 point check (see below).

Choosing your bank in Australia

There are basically four different types of institution in which you can open an account in Australia. The one you choose will depend on your individual needs and the services they offer. For example, they may provide brilliant customer service, low fees or an enticing welcome offer. The institutions can generally be divided into these options:

• Traditional banks -  have numerous branches where you can go in and speak to a bank teller for assistance with your banking. They generally offer almost every financial product available from banking to business loans, investment through to insurance.

• Online banks – don't have high street branches, but can assist with enquiries by phone, online chat boxes, emails and SMS. They are often characterised by fast response times to enquiries, less strict lending criteria and very competitive interest rates both for loans and for savings accounts.  They offer a narrower range of financial products than the big banks, but can offer a more personal service.

• Credit unions – are not-for-profit organisations which return any profits to their members via cheaper banking and loans, reduced fees and higher interest rates for savings. Many have physical branches you can visit in the major cities, but also offer sophisticated online platforms, phone assistance and banking, plus online chat assistance and email support.

• Building societies – similar to a credit union, building societies are owned by their members and offer a limited but very competitive range of banking products and loans. As profits are returned to members, they’re able to offer highly competitive home loan interest rates and banking products that offer low or no fees and bonus interest on savings accounts.

Types of bank accounts in Australia

There are a number of accounts to choose from and the one you should open will depend on your everyday and long-term needs. You may even require more than one type of account.

• Everyday transaction accounts are primary, everyday accounts that allow you to pay bills, shop and spend.  They usually don’t earn any interest and often have monthly account fees.

• Savings accounts are often linked to a transaction account. They allow you to store your money to earn interest and to save up for more expensive items, such as cars and overseas holidays.

• A term deposit is a deposit account for a set period of time and it often gives access to a higher interest rate.

• An offset savings account will reduce the interest you pay on your home loan by offsetting the principal amount you borrowed to buy your property.

What’s required to open a bank account in Australia?

If you're a new customer to any Australian bank or financial institution, you'll have to verify your identity with ID worth 100 points. This is required when you open a new bank account in Australia, and it can be done online without needing to visit a bank branch.

You can meet the 100 points of ID requirement by showing your passport, birth certificate or driver’s licence. Primary documents are worth 70 points and secondary documents can be worth: 40, 35 and 25 points.

Primary documents: 70 points

• Birth certificate

• Birth card issued by NSW Registry of Births

• Citizenship certificate

• Current passport

• Expired passport which has not been cancelled and was current within the preceding two years

• Other document of identity having the same characteristics as a passport including diplomatic documents

Secondary (photograph and name): 40 points

• Driver licence issued by an Australian State or territory

• Road and Maritime Services photo card

• Licence or permit issued under a law of the Commonwealth, a State or Territory government

• Identification card issued to a public employee

• Identification card issued by the Commonwealth

• An identification card issued to a student at a tertiary education institution

Secondary (must have name and address on it): 35 points

• A document held by a cash dealer giving security over your property

• Council rates notice

• Land Titles Office record

• Document from your current employer or previous employer within the last two years

• A mortgage or other instrument of security held by a financial body

Secondary (must have name and signature/date of birth): 25 points

• Marriage certificate (for maiden name only)

• Credit card

• Foreign driver licence

• Medicare card

• EFTPOS card

• Record of primary, secondary or tertiary education institution attended by you within the last 10 years

• Record of professional or trade association of which you are a member

What documents do I need to open a bank account in Australia?

Depending on the institution you decide to bank with, you will probably need to show these documents to open a bank account in Australia:

• Passport, driver licence or national identity card

• Visa

• Proof of address

• Recent utility bill

• Tenancy agreement

• Tax information (registration from Australia Taxation Office)

• Employer details and salary

Sending money back home with your new bank account

If you do decide to move to Australia, or in fact another country, WorldRemit can help you stay connected to those you love. If you need to send money back to family and friends, we offer you an excellent low cost, online money transfer service: one that allows you to send fast* and secure transfers. You also have a choice of ways for your money to be received - cash pickup, bank transfer, mobile money and airtime top up. Whatever suits you and your receiver best.

So why not sign up to send with us today. And, if you need any more information on the different aspects of living abroad, you can also refer to our blog for a range of interesting articles.

Opening a bank account in Australia : FAQs

Can I open an Australian bank account online?

Yes. Most Australian bank accounts make it quite simple for foreigners to open a bank account in the country. And unlike other places, you don’t have to be in the country to do so. You can open an account via the internet or over telephone.

How long does it take to open an Australian bank account?

It can take as little as 5-10 minutes online. However, as a new arrival applying from outside the country, you’ll need to go to your local branch in person with your ID and any other documentation once you arrive in Australia. Until you do this, you may not be able to make full use of your new account.

Is there a minimum deposit to open a bank account in Australia?

Many institutions in Australia won’t charge monthly fees and offer unlimited transactions, as long as a minimum amount is deposited each month. This is typically set to 2,000 AUD (1,377 USD), which is lower than the average monthly salary.  

*95% of our August 2021 money transfers were authorised within 60 minutes.

The contents of this blog post does not constitute legal or financial advice and is provided for general information purposes only. If you require specific legal and / or financial advice you should contact a specialist lawyer or financial advisor. Information true at time of publishing.