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Bank accounts with no monthly fee
20 July 2023
Do you pay a monthly fee on your everyday bank account? Find out how you much you might be able to save with a fee-free bank account.
A monthly account keeping fee is a fee that banks charge you for using your account and 28% of transaction accounts on Canstar’s database currently charge it. Providers charge a $5 monthly account keeping fee on average, based on our database. This means you could be paying over $60 each year in account keeping fees alone.
What banks have no monthly fees?
The following banks offer a transaction account with no account keeping fee:
- AMP Bank
- ANZ
- Australian Military Bank
- Australian Mutual Bank
- Australian Unity Bank
- Australia Bank First
- Bank of Melbourne
- BankSA
- BankVic
- Bankwest
- Beyond Bank
- BOQ
- Credit Union SA
- Easy Street Fin Services
- Geelong Bank
- Great Southern Bank
- Greater Bank Heritage Bank
- Horizon Bank HSBC
- Hume Bank
- IMB
- ING
- Macquarie Bank
- ME
- MyState Bank
- NAB
- Newcastle Permanent
- People’s Choice
- Qudos Bank
- Queensland Country Bank
- RACQ Bank
- Regional Australia Bank
- St.George Bank
- Suncorp Bank
- Teachers Mutual Bank
- The Mac
- The Mutual Bank
- Transport Mutual Credit Union
- ubank
- UniBank
- Up
- Virgin Money
- Wise
Source: Canstar Research as of 20/07/2023. Based on personal transaction accounts on Canstar’s database.
Of the big four banks, NAB and ANZ are the only two that currently offer a transaction account with no monthly fee.
A number of banks say they will waive the monthly fee if you make a minimum monthly deposit. More than 1 in 2 – 58% – of transaction accounts on Canstar’s database do this at the time of writing, and the average deposit required is $2,000 each month. Some banks also waive the fee in other circumstances, such as if you are a full-time student or are receiving certain government payments (such as the Age Pension), or offer separate everyday accounts for these customers.
What fees are charged on bank accounts?
As well as monthly fees, bank accounts can also come with fees that only apply in certain circumstances. These can include international fees (e.g. currency conversion fees), ATM fees and dishonour fees. We’ve taken a look at the main types of fees you may be charged and how much they could cost you.
Transaction account fees
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| Fee | % of accounts that charge a fee |
Median |
|---|---|---|
| Monthly account keeping | 28% | $5.00 |
| Monthly deposit to waive | – | $2,000 |
| EFTPOS transaction | 17% | $0.70 |
| International/currency conversion fees | ||
| EFTPOS conversion | 80% | 3.00% |
| Fixed international POS charge |
15% | $4.50 |
| ATM currency conversion | 79% | 3.00% |
| International ATM charge | 59% | $5.00 |
| Direct debit | ||
| Direct debit | 9% | $0.50 |
| Dishonoured direct debit | 68% | $10.00 |
| Cheque fees | ||
| Cost of cheque book (25 cheques) |
16% | $14.00 |
| Cheque withdrawal | 17% | $1.50 |
| Cheque deposit | 9% | $0.85 |
| Dishonoured cheque | 55% | $12.00 |
| Other fees | ||
| Unauthorised overdraft | 49% | $10.00 |
| Branch cash withdrawal | 19% | $2.00 |
| Phone transaction with operator assistance |
9% | $5.00 |
| Failed ATM transaction own network |
11% | $0.80 |
| Failed ATM withdrawal own network |
7% | $1.20 |
Source: www.canstar.com.au – 20/07/2023. Based on personal transaction accounts on Canstar’s database. Median based only on accounts that charge a fee.
How to avoid bank fees
Bank fees can add up if you’re not careful. Here are a few ways to help avoid them:
Pick the right account
Make sure your bank account suits you and your payment habits. For example, if you regularly travel or make overseas purchases online, you might want to pick an account that charges no or low international fees. Check your bank’s schedule of fees and other relevant terms and conditions so you understand what you could be charged for.
Do up a budget
You could also create a budget to help avoid overdrawn and dishonour fees. This will help make sure you have enough money in your account to cover any upcoming payments. Setting reminders for when payments such as household bills are coming up could also help you to stay on top of your budget and avoid unnecessary fees.
→ Related article: 6 savings & budgeting apps worth checking out in 2022
Check if you can get a fee waiver
Ask your bank if you are eligible for any fee waivers. For example, some banks may waive monthly fees if you deposit a certain amount of money into your account each month, or if you are a full-time student or receiving government benefits.
Shop around
Lastly, it could be a good idea to do your research and compare your options regularly. Although we’ve been focusing on fees, it’s just as important to look at the features on offer. Consider what you want out of your transaction account. For example, do you want an account that offers budgeting and saving tools? Or would you like access to a large ATM network? Will you be opening a linked savings account?
You can compare a range of transaction accounts by using Canstar’s comparison tables. Canstar compares accounts based on both price and features. If you’re shopping around, Canstar also has a roundup of some of the best-value bank accounts available to Australians, as judged by our expert researchers.
Original article by Tamika Seeto. Main image source: Krakenimages.com/Shutterstock.com
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