Are you ready to begin your new life in Australia? Opening an Australian bank account is a crucial first step. Not only is it a requirement for most employers, but it also makes managing your finances and paying bills a breeze.

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Opening of a bank account in Australia

“Traditional” Banks

Australia has a wide variety of banks, from large supraregional institutions to small regional players. With so many options available, it can be difficult to choose the right one for your needs. While I can’t recommend a particular bank, I personally suggest looking into the major banks such as NAB National Australia Bank, ANZ, Commonwealth Bank, and Westpac. These banks have a presence throughout the country and often allow you to open an account from abroad before arriving in Australia.

The good news is that as of late 2017, the four major banks have removed ATM fees from other banks, saving you money when accessing your funds. However, it’s important to carefully review the conditions of each bank account before making a decision. Banks often offer enticing deals such as no fees, low costs, and high interest rates, but it’s important to check the fine print for any time limitations or other restrictions.

Each bank offers different types of accounts with varying names, so it’s worth checking their website to see which account suits your needs best. Look for “everyday accounts” on their pages to get an idea of what they offer. For example, ANZ bank offers an account called “ANZ-Access-Advantage” which may be worth considering.

In summary, take your time to research the different bank options available to find the best one for you. With so many options available, it’s important to review the conditions and ensure that you’re getting the best deal possible.

Wise Multi-currency Account

When travelling abroad or moving to a new country like Australia, it’s important to consider your banking options. One great tool to consider is the Wise multi-currency account, which provides free local bank account details in Europe, UK, US, Australia, and New Zealand. This allows you to have a local bank account before arriving, making it easier to manage your finances and avoid excessive fees. Plus, their international payment fees are much lower than traditional banks.

Setting up a Wise account is easy and only takes a few minutes. You can sign up online or through their app with an email address or a Google, Facebook, or Apple account. All you need to verify your identity is a government ID. Once you’ve set up your account, you can add money using your bank account, Apple Pay or your credit/debit card.

The Wise multi-currency account includes a free debit card – spend and withdraw in 40+ currencies from local ATMs.

Unfortunately, the Wise multi-currency account wasn’t available when I moved to Australia, but I wish it had been. I travel frequently, and using traditional debit cards can be costly due to fees.

Australian Tax File Number and general bank documents

t’s worth noting that having documents from your bank, such as a bank statement, can be very useful when proving your address to authorities or elsewhere.

Also, keep in mind that it’s a good idea to apply for an Australian Tax File Number (TFN) to avoid having a withholding tax deducted from any interest you earn as a foreigner.

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Transferring money

If you’re relocating to Australia, you may need to transfer your monetary assets to Australia at some point. However, it can be challenging to choose the right method. There are several methods available:

Money transfer via your normal bank

Sending money via your regular bank is not recommended, as it often comes with high fees that lack transparency. These fees can include exchange rates in foreign currency (AUD), fees charged by participating banks (which can be numerous), and other hidden expenses. As an example, when I transferred €5,000 to my Australian account through various banks, my bank charged me €15 in fees. After the exchange rate, that should have been AUD 7,459. Instead, I received AUD 7,074.92, which equates to 5.15% in fees.

Cash Withdrawal Transfer Option

If you need a small amount of cash quickly, withdrawing it from an ATM in Australia can be a good option. However, you should be aware that fees may apply. Your bank may not charge fees for cash withdrawals abroad, but the foreign banks and credit card companies involved in the transaction may have fees.

For example, I withdrew AUD 400 and paid a total of €273.08. According to the official exchange rate, that should have been only €265.93, which means an extra 2.68% was added in fees. Although still less expensive than a bank transfer, it’s important to be aware of the extra costs.

Online money transfer services

When it comes to transferring money to another country, there are several online money transfer services available on the internet that promise cheaper rates than bank transfers. While they are always more affordable than bank transfers, they differ significantly in their offerings. Notable providers include Ofx and Wise (formerly TransferWise), and you can use a comparison tool to compare exchange rates across different providers.

Wise – The Best Option for International Money Transfers

From my own experience, I recommend Wise. It’s a great tool for sending money internationally with low fees. You can also use their debit card to pay and withdraw money from ATMs when you travel.  Wise maintains its own bank accounts in all countries whose currencies are exchanged by Wise. You transfer the amount in your currency to a Wise bank account in your country and receive the AUD from an Australian Wise account for the official international exchange rate. Therefore, the money never really leaves the currency zone and consequently does not cause any international fees.

Here is a little You-tube Video that shows how it works:

Wise applies a fee to exchange money between currencies in your account, which varies depending on the currency. That is like any other online money transfer service. However, all fees and the resulting amount you receive are transparently displayed. I have found that Wise is not only dependable, but also consistently less expensive than comparable services.

Example:

As you can see, this type of transfer is by far the cheapest. Therefore, it is advisable to open an account in Australia as early as possible.

Steps to Transfer Money Online via Wise

Transferring your money online through Wise is a straightforward process that involves just a few simple steps:

Register for free
Signing up with Wise is free and can be done using your email address, or your Google or Facebook account.

Select the amount to send
Wise will display their fees upfront and provide an estimated arrival time for your transfer.

Enter recipient’s bank details
Add the details of the person or organization receiving your money.

Verify your identity
In some cases, such as for large transfers or certain currencies, Wise may require a photo of your ID for verification.

Pay for the transfer
Pay for your transfer using a bank transfer, PayID, POLi, or a debit or credit card.

Done
You can track your transfer in your Wise account, and the recipient will be notified of its arrival. Additionally, all fees and the amount received are transparently displayed throughout the process.