Ok how are you starting to live in Australia and being completely unaware of whether ir not we have credit unions dude
Avoid the big 4 banks (Commonwealth bank, ANZ, Westpac, NAB), Credit unions are a thing, I personally use Bank Australia , which rose out of a credit union i've been a member of since the 80's
It’s been a matter of priorities. A few prerequisites for even being employed in Australia and making the journey over. While I had a minute, I thought I might try to get a high level “banks bad, credit unions good” or whatever sort of overview. Thanks for the input, mate. Good on ya.
Look into fees and structure of accounts at whichever institutions you are considering, from the angle of what fits your situation. Also consider whether you prefer a bank with a physical branch (in which case, your short list is whichever banks are convenient to where you live) or whether online banking is sufficient (some banks are online only). Some banks also limit how much money they'll guarantee; so if your accounts might go over $249k you should make sure your chosen bank is good with that.
Over the years I have had accounts with: Westpac, ING Direct, Teacher's Mutual Bank (formerly a credit union), NAB, ME Bank, Up, and a couple of others I don't remember. None of them were especially bad, but they did different things for me at different points in my life.
When my parents (who are not citizens, have never worked in this country, and are here for a couple of months at a time) wanted a bank account to use while here, I set them up with NAB. That was the option with a physical branch nearby that wasn't going to hit them with monthly fees for the privilege of having an account, when the account was not in regular use. (NAB has since closed the branch near us, so idk how much longer they're going to have our business.)
Final thought: there is no contract with your bank unless you take out a loan or term deposit. Pick one to start, and if it's not a fit you can move your money elsewhere. Don't stress.
Some banks also limit how much money they’ll guarantee; so if your accounts might go over $249k you should make sure your chosen bank is good with that.
My understanding is that the deposit guarantee is $250k across the board, because it's a federal government measure.
Simply:
Under the FCS, deposits are protected up to $250,000 for each account holder at each licenced bank, building society or credit union incorporated in Australia.
Source: https://www.apra.gov.au/deposit-checker-are-your-deposits-protected
So if you have much more than $250k in cash, you ought to spread it over multiple banks. But pretty much all banks (you can check this list) are guaranteed for 'normal' cash accounts (transaction, savings, term deposit), and they're all to the same $250k limit.
Seems to be very similar to the US system. Not quite sure why I was expecting any drastic differences. Thanks!
Thanks for the correction. I have only ever seen the point flagged by the smaller banks I've looked at, so I assumed it was a small bank thing. Maybe I've not looked in the right places on larger banks' websites.
The linked page says several times "for each account holder". But that doesn't mean a joint account gets double the guarantee, does it?
The linked page says several times “for each account holder”. But that doesn’t mean a joint account gets double the guarantee, does it?
That is what it means, yes. Or, stated differently, an equal split of a joint account's balance is counted towards each of the joint holders' deposit guarantee limit.
See here: https://www.apra.gov.au/frequently-asked-questions-about-banking-and-financial-claims-scheme
Case study
Alex and Peter have a number of accounts with their credit union:
- $300,000 in a joint account
- $50,000 in a separate account in only Alex’s name.
The FCS protects a total amount of deposits up to $250,000 for each account holder for each bank, building society and credit union. Therefore, Peter is covered under the FCS for $150,000 (half the joint account) while Alex is covered for $200,000 (being the sum of $150,000 from the joint account in addition to the $50,000 from his individual account).
We also have !ausfinance@aussie.zone and !ama@aussie.zone, just FYI :) (not saying you shouldn't have posted this in !brisbane or anything)
Appreciate the suggestions. I thought to start here since we’ll be setting up home in Brisbane. Posted now in those other communities.
Yeah, absolutely fair enough, and for all I know there could be some helpful region-specific information around banking (particularly when it comes to physical branch offices).
Home of the bin chicken. Visit our friends: