Compare everyday transaction accounts

What is a transaction account? 

A transaction account is an everyday bank account that is used for your day-to-day banking. These accounts allow unlimited withdrawals and deposits, so are ideal for daily or frequent use. 

Most people use a transaction account as the default account for payments like salary and wages, and withdrawals such as paying bills and making purchases.

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
• Can be linked to mobile payments platforms, 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. 

Transaction accounts can also be called everyday accounts or checking accounts. If you own a business, you can also open a business bank account with similar features and benefits.

Types of transaction accounts

While most transaction accounts are all-purpose, some specific types include: 

• Student accounts: Available to full-time students or children under 18, these usually offer fee-free access and other benefits. 
• Joint bank accounts: Usually designed for couples or families, these accounts allow two or more people to access funds.
• Concession or pensioners/seniors accounts: Accounts designed specifically for concession card holders, often with no fees and extra features.
• Retirement accounts: Similar to concession card accounts and available to retirees. 

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

Savings accounts award interest on your account balance, so are great for customers looking to save money. A savings account may be linked to your everyday transaction account, so you can easily transfer money between the two. 

Some savings accounts reward you with bonus interest or waived fees if you maintain a minimum balance, avoid making withdrawals, or deposit funds monthly. 

Unlike transaction accounts, savings accounts don’t come with a debit card and aren’t meant to be used for your day-to-day spending. Some banks will also only allow you to transfer money from your savings account to a linked everyday account, rather than making withdrawals or payments directly from your savings. 

Luckily, Canstar's research shows that most of us are already savvy to the benefits of a separate savings account. Of Australians with savings, 41% keep most of their funds in a designated savings account, compared to just 5% who stash their money in their everyday transaction account.

Can I earn interest on a transaction account?

Transaction accounts typically don’t pay interest, or only a very small amount. 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 helps reduce your interest charges.

Do transaction accounts have fees?

While many fee-free bank accounts are available, some banks still charge a monthly account-keeping fee. However, banks may waive the monthly fee if you meet certain conditions (such as making a minimum monthly deposit, or if you’re a student or pensioner). 

Depending on your banking habits and the account you choose, you may be charged other fees like international currency conversion fees, ATM fees and overdraft fees. 

To avoid fees, look for a bank account that matches your spending habits. For example, if you regularly travel or make overseas purchases online, you may prefer a transaction account with low or no currency conversion fees.

Are transaction accounts safe?

Storing your money in a bank account is much safer than keeping physical cash, and Australian banks employ sophisticated security and fraud detection tools to protect your assets and identity. To help keep your accounts safe, use security features like Multi Factor Authentication (MFA), avoid giving out your bank account details (use PayID or PayPal), and never share your passwords or PINs. 

In the event of your bank going under, your money is also protected by the Financial Claims Scheme (FCS). The FCS guarantees deposits up to $250,000 per account holder, per financial institution.

Are there limits on how much money I can deposit in or withdraw from a bank account?

There may be daily restrictions on how much money you can withdraw or spend via your debit card or an ATM, as well as how much you can transfer out. If you use internet or mobile banking, check your account’s transfer limits.

Generally there’s no limit on how much money you can deposit at once, but amounts of over $10,000 may be reported to the Australian Transaction Reports and Analysis Centre (AUSTRAC), which investigates potential fraud and money laundering.

What happens if I overdraw my bank account?

If your account goes into a negative balance (i.e. more money is taken out than is actually available), you may be charged an overdraw fee. This fee is usually applied the next business day if your account doesn’t return to a positive balance.

Most major banks charge a $15 fee per day for payments that take your account below zero. You may also be charged additional outward dishonour fees for any payments from your account that can’t be processed due to a negative balance. Some banks will also charge debit interest on the amount owing, which is calculated daily while the account is overdrawn. 

You can turn off the ability to overdraw your account through your bank’s online portal or mobile app, or by calling customer service or visiting a branch. This can prevent your account going below zero: however, it won’t stop dishonour fees applying if debits or payments are refused due to lack of funds.

How do I compare transaction accounts?

Some of the features and factors to look at when comparing transaction accounts include:

Bank/financial institution

There’s plenty of basic fee-free transaction accounts on the market, so you may want to compare different banks as a whole to see which one is a good fit for your needs. Consider the other products you can use alongside your transaction account, like savings accounts, credit and debit cards, or even personal or home loans. 

How you can access your money

Think about the payments and access options you’ll require, such as:

• EFTPOS (payment by debit card)
• Mobile/contactless payments
• Online transfers
• Bill payments
• ATM access
• Internet and mobile banking.

Fees and charges

Is there a monthly account fee, or any fees that are likely to apply to your account use (e.g. ATM charge or currency conversion fees)? 

Other features 

You can also look at any extras included with or alongside a transaction account, including:

• Budgeting and saving tools
• Security features
• Rewards programs.

Insider tip: Take advantage of apps

Many mobile banking apps offer great features to help you save, budget and track your expenses. Apps can show you a full breakdown of your monthly expenses, alert you when direct debits are due, and help you set up a savings plan to reach your goals. If you want on-the-go control of your money, factor in the digital and mobile experience when you're comparing bank accounts.

What are the pros and cons of transaction accounts?

Pros:

• Easiest way to access your money
• Available with a fee debit card for easy in-store and online payments, as well as ATM use
• Can be connected to online and mobile banking
• Can be used to make bank-to-bank transfers, bill payments via BPAY, real-time payments (e.g. PayID or Osko) and contactless/NFC payments (e.g. Apple Pay, Samsung Pay) 
• Can be linked to other accounts, including savings accounts
• More secure than cash.

Cons:

• Account-keeping fees may apply
• Fees may apply for withdrawals from ATMs outside your bank’s network
• Unable to earn interest on the account balance
• Fees may apply for overseas use or for transactions in currencies other than Australian dollars
• Some accounts may allow you to overdraw, then charge interest on the debit amount.

Transaction accounts with debit cards

A debit card is a physical plastic card that’s linked to your bank account and allows you to make purchases or withdraw cash. 

Your bank will typically send you a debit card in the mail after you open a transaction account. You can also add a digital version of your card to your digital wallet (e.g. Apple Pay, Google Pay or Samsung Pay). 

Almost all Australian debit cards are linked to either a Mastercard or Visa network, and can be used almost anywhere in the world.

What’s the difference between a debit card and a credit card?

Debit cards let you use the money you already have in your transaction account to make payments and purchases. 

Credit cards use money borrowed from your financial institution, which you’ll need to pay back along with interest and fees. 

Debit cards are a popular option for customers who prefer to spend their own money, but don't want to carry large amounts of cash. According to Canstar research from 2025, 52% of us prefer to use our debit card, rather than cash or a credit card, when shopping in-store.

What is a rewards debit card?

Rewards debit cards offer bonuses or incentives for making eligible purchases or payments. These bonuses can include cashback for purchases, rewards points or frequent flyer points, similar to what’s offered on a rewards credit card. 

Debit cards with rewards may also offer benefits like no out-of-network ATM or international transaction fees; however, you may be required to pay a monthly card fee.

You can link your rewards debit card to your transaction account and use it for everyday purchases in-store, online or over the phone. Some banks that currently offer rewards debit cards include:

• Bankwest
• Commonwealth Bank
• HSBC
• ING
• NAB
• Suncorp
• Virgin Money

Insider tip: Get rewarded for free

Some debit cards are marketed specifically as 'rewards' versions, so may come with a monthly or annual fee. But many banks include bonus rewards features or perks with their standard debit cards – completely free of charge. If inclusions like frequent flyer points, rewards points or overseas benefits are important to you, don't assume you need to fork out extra – check the complementary features on debit cards too.

How do I activate a debit card and PIN?

Your bank should send out your debit card with instructions on how to activate it. Most financial institutions allow customers to activate cards through a mobile app or online banking portal (and sometimes by SMS). 

Some banks require customers to create their own Personal Identification Number (PIN), which is a code that allows you to use the card to make large purchases or cash withdrawals. However, you may instead receive a temporary PIN mailed separately to your card, which you should then change. You can update your PIN through your bank’s app or portal, in person at any branch, or at ATMs in your bank’s network. 

What are the best transaction accounts in Australia?

The best transaction or bank account for you will be the one that best meets your personal needs. 

However, Canstar’s banking awards highlight financial providers offering extra value – our latest winners are below. 

2026 Transaction Account Award winners

Outstanding Value Award – Transaction Accounts

The following providers received Canstar’s Outstanding Value Awards in 2026 for transaction account products:

• Australian Military Bank
• Bankwest
• Commonwealth Bank
• Great Southern Bank
• HSBC
• ING
• Macquarie Bank
• NAB
• Suncorp
• Westpac

2025 Everyday Banking Award winners

Bank of the Year Award

The following providers received Canstar’s Everyday Banking Awards in 2025 for transaction account products.

• Everyday Banking – Customer-Owned Bank of the Year: Australian Military Bank
• Everyday Banking – Bank of the Year: HSBC

How to open a transaction account

Opening a bank account in Australia is quick and easy, although there are a few requirements. You’ll need to be at least 14 years old (18 years old for joint accounts) and have an Australian residential address and at least one form of valid identification. 

1. Compare and choose your new provider and transaction account. Consider the features listed above, such as fees and how you can access your money.
2. Start the application process. You can open a new bank account in person at a physical bank or credit union, or online via the provider’s website. 
3. You’ll be asked to provide your personal details (name, date of birth, address, etc.) and verify your identity. This requires 100 points of valid identification, which can include primary photo ID (such as a driver’s licence, identity card or passport) and primary documents (birth certificate, citizenship certificate, etc.).
4. Once your account is open, you’ll be able to transfer funds and set up any debits or payments straight away. If you’ve requested a debit card, you’ll need to wait a few business days for it to arrive by mail. 

How to transfer money between bank accounts

The easiest way to transfer money between accounts is through internet or mobile banking. You can also make transfers between your accounts over the phone, or in person at any branch or your bank or financial institution. 

To transfer money to an account that isn’t yours, you’ll need the recipient’s bank account details or PayID.

Can I have accounts at more than one bank?

You can have bank accounts at multiple financial institutions - you’ll just need to go through the same application and identification process for each one.

How to change bank accounts

1. Compare banks and decide on your new transaction account.
2. Open your new account: This can be done in-person or online – follow the steps above on how to open a bank account. 
3.  Make a list of your direct debits and payments. This may be available in your online banking app, on your bank statements, or by requesting a complete list of direct debits and credits from your current/old bank. Also check for BPAY payments, which may not show up on a list. 
4. Move your direct debits and payments to your new account. You can do this manually, or ask your bank to help with the process. Make sure to also notify your employer (and anyone else who may need to transfer your money) that your account details have changed.
5. Transfer any remaining funds from your old account to your new one. Once this is complete, you can close your old account for good. 

How to close a bank account

If you’ve cancelled or moved any direct debits or payments and transferred the balance to a new account, you can close your existing bank account.

1. You’ll need to ensure that the account is not overdrawn and there’s no outstanding fees or pending transactions (e.g. card purchases or cheques that have yet to clear). 
2. You may also want to download or request copies of past bank statements for future reference.  
3. Contact your bank to start the closure process. You can do this in person at your nearest branch or over the phone, and some institutions may allow you to close accounts through their app or online banking portal. 
4. If you’re visiting a branch, you’ll need a valid photo ID; for phone or online closures, you may need to answer security questions or input a password. 
5. Once your account is closed, destroy any linked debit cards, cheque books or passbooks, and remove the debit card details from any digital payment platforms.