Transaction Accounts Background

Compare Transaction Accounts

If you’re looking for a transaction account, you can learn more about them with Canstar. Peruse the winners of our Transaction Account Awards to find one that may be suitable for you.

Group Manager, Research & Ratings
Editor-in-Chief
Fact checked

Transaction Account Awards 2023

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Everyday Banking Award Winners

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What is a transaction account?

A transaction account is an everyday bank account that is used for your day-to-day banking. It typically comes with a linked debit card for your everyday spending. Most people get their pay deposited straight into their transaction account and also use this account to pay bills and make transfers.

Transaction accounts can come with a range of features and benefits, such as:

  • a debit card with Visa PayWave or Mastercard PayPass for contactless payments
  • mobile payments, such as Apple Pay, Google Pay and Samsung Pay
  • ATM access in Australia and internationally
  • the ability to send and receive money via a range of payment methods, such as Pay Anyone, Osko, PayID and BPAY
  • mobile and internet banking so you can access your money 24/7.

How do Canstar’s Transaction Account Awards work?

Canstar considers over 100 transaction accounts from different banks and financial institutions. Our expert researchers use a sophisticated methodology to rank accounts based on their fees and features. We give the top performing accounts a 5-Star Rating.

When comparing transaction accounts, here are some factors to look out for.

Account-keeping fees

Some banks charge a monthly account-keeping fee, which can add up over time. It’s best to look for a transaction account with no monthly fee, or one where you can get the fees waived. Many banks waive the monthly fee if you meet certain conditions (such as making a minimum monthly deposit or being a student or pensioner). If you will pay a fee, check whether the features justify the cost.

Other fees

Depending on your banking habits and the account you choose, you may be charged other fees like international currency conversion fees, ATM fees, EFTPOS transaction fees and overdraft fees. Think about your spending habits. For instance, if you regularly travel or make overseas purchases online, look for an account that has low or no currency conversion fees.

Features

Think about how easy it is to use your account day-to-day. For instance, can you make contactless or mobile purchases? Does the provider’s mobile or internet banking service let you easily make transfers, pay bills and see your spending history? Are there any budgeting tools available? What security features are on offer?


About our finance experts

Nina Rinella, Editor-in-Chief

As Canstar’s Editor-in-Chief, Nina heads up a team of talented journalists committed to helping empower consumers to take greater control of their finances. Previously Nina founded her own agency where she provided content and communications support to clients around Australia for eight years. She also spent four years as the PR Manager for American Express Australia, and has worked at a Brisbane communications agency where she supported dozens of clients, including Sunsuper and Suncorp.

Nina has ghostwritten dozens of opinion pieces for publications including The Australian and has been interviewed on finance topics by the Herald Sun and the Sydney Morning Herald. When she’s not dreaming up ways to put a fresh spin on finance, she’s taking her own advice by trying to pay her house off as quickly as possible and raising two money-savvy kids.

Nina has a Bachelor of Journalism and a Bachelor of Arts with a double major in English Literature from the University of Queensland. She’s also an experienced presenter, and has hosted numerous events and YouTube series.

You can follow her on Instagram or Twitter, or Canstar on Facebook.

You can also read more about Canstar’s editorial team and our robust fact-checking process.


Josh Sale, Transaction Account Ratings Manager

Headshot of Josh Sale, CanstarAs Canstar’s Ratings Manager, Josh Sale is responsible for the methodology and delivery of Canstar’s Transaction Account Star Ratings and Awards. With tertiary qualifications in economics and finance, Josh has worked behind the scenes for the last five years to develop Star Ratings and Awards that help connect consumers with the right everyday account for them.

Josh is passionate about helping consumers get hands-on with their finances. Josh has been interviewed by media outlets such as the Australian Financial Reviewnews.com.au and Money Magazine.

You can follow Josh on LinkedIn, and Canstar on Twitter and Facebook.


Transaction account FAQs

1. Do I get a debit card when I open a transaction account?

Yes, your bank will typically send you a debit card in the mail after you open a transaction account. You will need to activate your card before you can use it. Some financial institutions let you use a digital debit card immediately by adding the card to your digital wallet (e.g. Apple Pay, Google Pay or Samsung Pay).

2. Do transaction accounts earn interest?

There are some transaction accounts that earn interest, but transaction accounts typically do not offer this. If you want to earn interest on your money, you could consider opening a savings account or term deposit. If you have a home loan with an offset account (a transaction account linked to your home loan), putting money into this account would help reduce your interest charges.

3. What is an account-keeping fee?

An account-keeping fee is a monthly fee that some providers charge you to use your transaction account. For example, at the time of writing, ANZ, Commonwealth Bank and Westpac all charge monthly fees on their general transaction accounts unless you meet certain conditions. Many banks waive the monthly fee if you meet conditions, such as depositing a minimum amount into your account each month.

4. What is the difference between a savings account and a transaction account?

Savings accounts are designed to help you save money and you can earn interest on money you deposit into your account. They may be linked to your everyday transaction account. Unlike transaction accounts, savings accounts do not come with a debit card and they are not meant to be used for your day-to-day spending.

5. What is the difference between a debit card and credit card?

When you use a debit card, you are using money in your transaction account. When you use a credit card, you are borrowing money from your financial institution and you will need to pay this back plus any fees and interest. Debit cards are a less risky option because you can only spend money you already have (unless you have an overdraft facility).

Transaction account providers

The following providers received an Outstanding Value Award in 2023 for their transaction account products:

  • BOQ
  • Great Southern Bank
  • Ubank
  • ING
  • Macquarie Bank
  • Virgin money

 

This content was reviewed by Deputy Editor Sean Callery and Sub Editor Tom Letts as part of our fact-checking process.

Important information

For those that love the detail

This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.

Canstar does not rate or compare every provider in the market and we may not compare all features relevant to you. Learn more about our Savings and Transaction Accounts Methodology. Star Ratings are only one factor to take into account when considering products. Check current product details and investment options with the product issuer. Check current rates and product details with the product issuer. Sometimes the methodology uses profiles with categories or bands (e.g. income, loan amount or monthly spend), but sometimes a single methodology, without any categories or bands, is applied.

Any advice on this page is general and has not taken into account your objectives, financial situation or needs. Consider whether this general financial advice is right for your personal circumstances. Canstar provides information about credit products. We’re not suggesting or recommending a particular credit product for you. If you decide to apply for a loan, you will deal directly with the provider, not with Canstar. It’s important you check rates and product information directly with the provider. Consider the Target Market Determination (TMD) before making a purchase decision. Contact the product issuer directly for a copy of the TMD. For more information, read our Detailed Disclosure.

What is a Target Market Determination?

A Target Market Determination (‘TMD’) is a document that explains which people particular financial products may be suitable for (the target market) and sets out any conditions around how financial products can be distributed to consumers.

Why do product issuers provide Target Market Determinations?

From 5 October 2021, TMDs are compulsory for most financial products.

Issuers and distributors of financial products must take reasonable steps that are likely to result in financial products reaching consumers in the target market defined by the product issuer.

We recommend that you consider the TMD before making a purchase decision. Contact the product issuer directly for a copy of the TMD.

Canstar may earn a fee from its Online Partners for referrals from its website tables, and from sponsorship or promotion of certain products. Fees payable by product providers for referrals and sponsorship or promotion may vary between providers, website position, and revenue model. Sponsorship/promotion fees may be higher than referral fees. If a product is sponsored or promoted, it’s an ad and it is clearly marked as such. An ad might appear in different places on our website, such as in comparison tables and articles. Ads may be displayed in a fixed position in a table, regardless of the product's rating, price or other attributes. The location of an ad doesn’t indicate any ranking or rating by Canstar. Payment of fees for ads does not influence our Star Ratings. See How We Get Paid to find out more.