Checking your bank account regularly could save you money in more ways than one.
You might use your bank account every day, but do you really know what money is going in and out? It’s important you’re across what’s happening in your bank account and what you’re eligible for.
ASIC’s report Better Banking for Indigenous Consumers recently found that more than 150,000 people on low incomes were in high-fee bank accounts, despite being eligible for a basic low-fee account. Collectively, these customers paid over $6 million in fees that they didn’t have to.
What is a low-fee basic bank account?
Basic bank accounts have no account-keeping fees, no minimum deposit amounts, and no overdraft fees. These accounts are available if you qualify for a concession card issued by the Government. For example, a Pensioner Concession Card, Health Care Card, or Commonwealth Seniors Health Card.
If you qualify, ask your bank about their low-fee options. You could save money without changing banks. If they don’t have a low-fee option, or have restrictive conditions on what they offer, consider switching to another bank.
How to compare transaction accounts
When you’re looking at new bank accounts, it’s important to weigh up different features to make sure the account you get is the right one for you.
To do this, you may want to use a comparison website, but keep in mind these websites may not cover all your options.
Some things to check include:
- Account fees – are there any monthly account keeping fees?
- Account access – are there branches or ATMs where you need them?
- Branch fees – are there fees for making a deposit or withdrawal at a branch?
- Contactless payments – do you have contactless payment options?
- Overdraft fees – what fees will you pay if you take out more money than what’s in your account
- International transactions – can you use your account and card overseas? Are there any extra fees or charges for overseas transactions?
Tips when switching accounts
If you do decide to switch, here are some steps to take:
- Write a list of what’s coming out of your bank account: If you have direct debits set up, contact your providers with your new account details so you don’t miss any payments.
- Give your new account details to your employer or Services Australia (if applicable): This is important so that your employment income and any government payments you receive are paid into the right account.
- Watch out for scams: There are scammers who try to trick you into giving away your personal details so they can get your money. Your bank may contact you about your request to switch accounts, but they’ll never ask for your passwords or codes. Your bank also won’t ask you to download software, transfer money or log into online banking through links sent through text or email.
Avoid ‘set and forget’ with your banking
Use your bank statement or banking app to stay across your bank transactions and any fees you’re being charged. Checking your accounts regularly means you’ll also know if your salary and any government concessions are being paid.
Speak to your bank about any charges you’re not sure about or if there are any suspicious transactions.
Get help if you need it
If you’re not sure which account is right for you, a financial counsellor from the National Debt Helpline (1800 007 007) can help you find a no fee account.