submitted 1 month ago by [email protected] to c/[email protected]

10 comments fedilink hide all child comments

We’re working on setting up the ability to spend money easily in Australia. We’re looking at Wise for transfers and starting to live in Aus. As we roll into collecting pay, are there any banks or credit unions (if that’s even a thing outside of the US) that are recommended or actively discouraged from using?

top 10 comments

sorted by: hot top new old

[-] [email protected] 3 points 1 month ago

Look into fees and structure of accounts at whichever institutions you are considering, from the angle of what fits your situation. Also consider whether you prefer a bank with a physical branch (in which case, your short list is whichever banks are convenient to where you live) or whether online banking is sufficient (some banks are online only). Some banks also limit how much money they'll guarantee; so if your accounts might go over $249k you should make sure your chosen bank is good with that.

Over the years I have had accounts with: Westpac, ING Direct, Teacher's Mutual Bank (formerly a credit union), NAB, ME Bank, Up, and a couple of others I don't remember. None of them were especially bad, but they did different things for me at different points in my life.

When my parents (who are not citizens, have never worked in this country, and are here for a couple of months at a time) wanted a bank account to use while here, I set them up with NAB. That was the option with a physical branch nearby that wasn't going to hit them with monthly fees for the privilege of having an account, when the account was not in regular use. (NAB has since closed the branch near us, so idk how much longer they're going to have our business.)

Final thought: there is no contract with your bank unless you take out a loan or term deposit. Pick one to start, and if it's not a fit you can move your money elsewhere. Don't stress.

[-] [email protected] 2 points 1 month ago

Some banks also limit how much money they’ll guarantee; so if your accounts might go over $249k you should make sure your chosen bank is good with that.

My understanding is that the deposit guarantee is $250k across the board, because it's a federal government measure.

Simply:

Under the FCS, deposits are protected up to $250,000 for each account holder at each licenced bank, building society or credit union incorporated in Australia.

Source: https://www.apra.gov.au/deposit-checker-are-your-deposits-protected

So if you have much more than $250k in cash, you ought to spread it over multiple banks. But pretty much all banks (you can check this list) are guaranteed for 'normal' cash accounts (transaction, savings, term deposit), and they're all to the same $250k limit.

[-] [email protected] 2 points 1 month ago

Seems to be very similar to the US system. Not quite sure why I was expecting any drastic differences. Thanks!

[-] [email protected] 1 points 1 month ago

Thanks for the correction. I have only ever seen the point flagged by the smaller banks I've looked at, so I assumed it was a small bank thing. Maybe I've not looked in the right places on larger banks' websites.

The linked page says several times "for each account holder". But that doesn't mean a joint account gets double the guarantee, does it?

[-] [email protected] 2 points 1 month ago* (last edited 1 month ago)

The linked page says several times “for each account holder”. But that doesn’t mean a joint account gets double the guarantee, does it?

That is what it means, yes. Or, stated differently, an equal split of a joint account's balance is counted towards each of the joint holders' deposit guarantee limit.

See here: https://www.apra.gov.au/frequently-asked-questions-about-banking-and-financial-claims-scheme

Case study

Alex and Peter have a number of accounts with their credit union:

$300,000 in a joint account

$50,000 in a separate account in only Alex’s name.

The FCS protects a total amount of deposits up to $250,000 for each account holder for each bank, building society and credit union. Therefore, Peter is covered under the FCS for $150,000 (half the joint account) while Alex is covered for $200,000 (being the sum of $150,000 from the joint account in addition to the $50,000 from his individual account).

[-] [email protected] 3 points 1 month ago

Ok how are you starting to live in Australia and being completely unaware of whether ir not we have credit unions dude

Avoid the big 4 banks (Commonwealth bank, ANZ, Westpac, NAB), Credit unions are a thing, I personally use Bank Australia , which rose out of a credit union i've been a member of since the 80's

[-] [email protected] 3 points 1 month ago

It’s been a matter of priorities. A few prerequisites for even being employed in Australia and making the journey over. While I had a minute, I thought I might try to get a high level “banks bad, credit unions good” or whatever sort of overview. Thanks for the input, mate. Good on ya.

[-] [email protected] 2 points 1 month ago* (last edited 1 month ago)

We also have [email protected] and [email protected], just FYI :) (not saying you shouldn't have posted this in !brisbane or anything)

[-] [email protected] 2 points 1 month ago

Appreciate the suggestions. I thought to start here since we’ll be setting up home in Brisbane. Posted now in those other communities.

[-] [email protected] 2 points 1 month ago

Yeah, absolutely fair enough, and for all I know there could be some helpful region-specific information around banking (particularly when it comes to physical branch offices).

this post was submitted on 08 Apr 2025

4 points (100.0% liked)

Brisbane

1042 readers

19 users here now

Home of the bin chicken. Visit our friends:

founded 2 years ago

MODERATORS

[email protected]