Different types of bank accounts available

Bank accounts are no longer a ‘one size fits all’ products. The different features available are suited to children, students, savers, investors, seniors and more.

 

Everyday transactional accounts

This type of basic bank account can be used for managing your everyday transactions and payments to credit providers, and other accounts that you have linked. A monthly fee may apply for this account.

 

Fee free transaction accounts

Some everyday transactional accounts are also fee free. This means there will be no fees charged for ATM withdrawals or monthly account keeping fees. Conditions may apply.

 

Everyday reward account

These are special type of bank account that some lenders offer that reward you with points when you spend using their linked card. Some of these rewards offer frequent flyer or general rewards points when you make an eligible purchase. You can also earn points for keeping your money in the account.

 

Online savings accounts

Online savings accounts generally offer a high interest rates as there is less administrative work to be done by the bank. You will also need to transfer money from your online savings account into your everyday transaction account for access.

 

Bonus savings accounts

This type of savings accounts reward you with a higher interest rate if you meet a set criteria from the bank e.g. not touching the money in your account for at least a month or making minimum monthly deposit.

 

Term deposit

Investing with this type of account is where you put cash for a fixed period of time and with a fixed interest rate that you will get at the end of the term. This type of account can range from one month to five years term for the deposit, only withdrawing at the end of the term without penalty. You can still access your funds however you will be charged an early break fee for redrawing.

 

Offset account

Offset accounts i.e. your everyday transactional account are generally linked to a home or investment loan. The money you have deposited in this account will offset the amount of interest payable i.e. if your loan is $100,000 and you have $5,000 deposited in your offset account, you will only pay interest on $95,000. This will help you pay your loan off sooner.

 

There are many bank accounts available for your different stages of life. To work out what account is best for you, you can talk to your mortgage broker.


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