How to open a new bank account online

Need a bank account? Here’s how to open one online.

1. Can I apply?

Whether or not you can open a bank account in Australia depends on a few things, including if you are opening one with your existing bank or if you are a new customer. If you are an existing customer, this is typically an online-only process. But if you are a new customer, while you may be able to open a new account online, some financial institutions may require you to go to a branch to confirm your identity within a certain time frame after opening the account. Check with your chosen financial institution.

• Existing customer

If you already have a relationship with a financial institution, such as if you have another account or a loan with them, you may not need to meet any eligibility requirements to open a savings or transaction account (depending on the institution’s rules). It could be as simple as logging in to your banking app and pressing the ‘new account’ button. However, if you are applying for a credit product, such as a credit card, you will most likely have to go through an approval process, including a credit check, although this application process is also likely to be conducted online or via telephone, without the need to visit a physical branch.

• New customer

If you do not already have a relationship with the financial institution you want to open an account with, you typically need to:

• Meet age requirements. Only people over 12 years of age can have a bank account in Australia, and different banks could have different age requirements. Typically, the permission of a guardian is required for people under 15 or 16 to open a bank account. Credit card and investment accounts are also typically restricted to eligible adults.
• Live in Australia (or prove that you are going to). You may need to prove that you live in Australia, and provide a residential address and phone number. People moving to Australia from overseas may be able to open an Australian bank account before they arrive, if they meet certain criteria.
• Provide proof of your identity. If you are a new bank customer, you will need to provide the bank with a range of ID documents, sometimes in person at a branch, within a certain amount of time after applying for an account. Requirements could include providing a certain number of ‘primary’ documents, such as a passport, drivers licence, birth certificate and/or citizenship certificate or Centrelink pension/health care card; and some ‘secondary’ documents, such as a bill with your name and address on it, a tax return, a student ID or a letter from your school (if you’re under 18 years old).

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2. Choose an account

There are literally thousands of bank accounts to choose from in Australia, so deciding on exactly the right one for your needs may take some research. Things to think about when researching accounts include:

a. What do you want to use the account for?

Bank accounts typically fall into a few categories, such as transaction accounts, saving accounts, term deposit accounts and credit card accounts.

• Transaction account

• Savings account

• Term deposit

• Credit card account

b. Are there any fees and charges involved?

It can be a wise idea to read any terms and conditions in documents provided by the financial institution, such as the Target Market Determination (TMD), before making a decision, to better understand how much a financial product may cost you. You can compare different types of accounts online with Canstar.

Once you have made your decision about which bank and account you want to open, the next step is to visit the financial institution’s website and apply to open the bank account.

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3. Apply online

Applying online for a bank account is usually done via a financial institution’s full website, although some mobile phone banking applications do offer this function.

The process will differ depending on if you are a new customer or an existing one.

• Existing customers

Banking websites and applications typically allow existing customers to sign up for new savings and transaction accounts online, without having to verify any further information. However, there could be more conditions if an existing customer wants to open a credit card account.

• New Customers

If you are a new customer, signing up for a new bank account could involve

• registering with the website
• applying for the account you want
  • filling out online forms such as name, address, date of birth, etc
  • supplying ID documents (as listed above)
  • and agreeing to terms and conditions (such as the site’s privacy policy)

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4. Approval

After that, depending on the financial institution and the type of account you are applying for, you may need to wait to find out if your account application has been approved. However, for some types of accounts, this approval may take only minutes.

Once you are approved, and the account is opened and in your name, you can start using the account to manage your money. Most financial institutions have a mobile phone banking app that allows you to see your account balance and transaction history.

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