Hi all,
Need advice on getting a fee free bank account for a foreign friend. I use CBA student account but he is not a student.
Can you guys suggest him a completely fee free everyday account that he can use to deposit salary and shopping etc? I went through this thread but all the options gave me headache - https://www.ozbargain.com.au/node/102166
Something like the CBA offers. Thanks in advance.
Fully free? How is the service experience?
We've been with NAB for almost 20 years, have various accounts with them (basic everyday/ term deposit/credit card…) very happy.
There is a fee for foreign transactions (2.5% I think) but for everything you normally do, yes totally fee free.
What sort of service would you like?
NAB is what i used for years.
Citibank cards don't have Paywave or a chip so there's a little inconvenience there.
The internet banking website is horrible, the application for phones/tablets is even worse and with a totally unnecessary crypto PIN system (is it the only bank to do this to their customers?). Signing up for my account was a nightmare with constant trips to the post office to validate my details and phone calls to Citibank office. Took about 2 weeks to get it all sorted and from what I hear, it's not that uncommon.
I've got a Citibank, ING and NAB fee free everyday accounts (with attached savings accounts) and the best one for depositing salary into and accessing on a day to day basis is easily the NAB.
Citi is the best if you intent to travel OS, but for inside Australia - NAB can't be beat by Citi, not even close (even with the free bottle of wine).
Citibank cards now have Paywave and chip (as of quite recently).
I agree with the rest though with the addition that Citibank is good for overseas purchases, not just travel :)
I'd look at replacing the NAB with a Bankwest Zero Transaction Account if you consistently deposit your salary in there (more than 2k a month) - the benefit being access to any of the big 4 ATM's for no additional fee.
I would recommend a combination if you want to have it all.
NAB - no monthly fee, big ATM network, good online banking system
Citibank - no monthly fee, no foreign transaction fee, good exchange rates, uses Westpac ATM network, but atrocious customer service/internet banking etc.
ING - $75 free for signing up, 5% rebate on PayWave purchases under $100. Have to pay ATM fees unless withdrawing over $200.
Substitute the NAB everyday account for UBank Ultra + Ubank savings account if you need a savings account.
how do u get the $75 for signing up..noone seems to know anything about it
NAB doesn't have a big ATM network. Its RediATM or NAB. And remember NAB's recent glitch?
http://www.smh.com.au/business/banking-and-finance/doublecha…
Citibank - the only fee free account that doesn't charge a foreign transaction fee and has free withdrawals at Westpac/St George/Bank SA/Bank Melbourne ATMs. Free international transfers too.
HSBC - clone of Citibank, minus the foreign transaction fee and transfers, is more secure as some transactions need a linked security device and code. International bank too in nearly every country, so if you travel and want to open one up elsewhere I'd go here.
ING - left due to their stupid ATM limit, you must withdraw $200 or more otherwise they will charge you.
The Big 4 are rubbish, I'd just go with one of the foreign banks, they are all covered under the Oz $250K guarantee.
Who needs cash that much in these days? ATM is important for those needing cash often. Also, one can go to supermarkets to withdraw cash.
Citibank has fee-less international transfer but the destination account must be a citibank, also they charge commission when currency converts. So no point going after that.
HSBC has lots of complaint regarding customer service.
Can ING work as a regular Bank? I have not seen any branch of them anywhere.
"Citibank has fee-less international transfer but the destination account must be a citibank, also they charge commission when currency converts. So no point going after that."
No, destination account doesn't need to be a citibank account. I've successfully made multiple wireless transfers to overseas banks accounts of vendors to pay for products I've ordered and theirs weren't citibank accounts.
They don't charge any specific commission for international transfer, other than the spread built into their foreign exchange rates. There will be spread built into the foreign exchange rates of all banks when transferring to foreign corrency, and I think you'll find that citibank foreign exchange rates are actually a lot better than any of the Big 4's rates. Here's Citibank vs NAB for example
http://www.citibank.com.au/global_docs/onlinetools/ci1.htm
http://www.nab.com.au/personal/planning-tools/travel/foreign…
ING doesn't have branches - you need to transfer money from another account into there (or get payed directly into it)
Im with ING - no fees at all. dont have a problem withdrawing cash as i can just go to the supermarket to do so(woolworths you dont even need to make a transaction to withdraw cash)
and atm i get money back for every paywave purchase i make which is a big bonus(new accounts will get this too i think)
Haven't had any problems with them and pretty happy.
Nice comparison.
If you want to bank fee free, your best option is to use a credit union e.g qantas credit union
Upvote for Qantas Credit union.
You can use Westpac ATMs for free.
Qantas swallows all fees and charges, FIDs deposits and withdrawerals etc.
And you get INTEREST at the end of the month.
You just pay $10 to buy your share for life.
I've found that I can open as many accounts as I like.
Sorry I'm just about to leave them and this just isn't all true.
They do charge fees for nearly everything BUT give you an 'allowance' of transaction charges you can incur DEPENDING on how much funds you have deposited with them.
Online system is average - branches are VERY sparce - no weekend or after hours support - and very inflexible product offering (we need to buy house soon and forced to withdraw it in small amounts in advance due to very low tranfer levels they won't raise!)
Honestly way better options from Ubank, ME Bank and Citibank etc etc.
Citibank Plus is completely fee free. Better still, he can use it when he goes back home without getting slapped for international transactions.
But, ING is probably the best right now with the 5% cashback. They'll even pay you $0.50 when you withdraw $200+. Like others said though, it's a double edge sword.
He just prefers one of the BIG 4, not interested in ING. But my question is, can ING work as a Bank? I have not seen any branch of them anywhere.
ING Direct (the one with the 5% cashback) is purely online; no branches.
Is there any difference between ING direct and the Big 4 for everyday banking?
I'm not sure what you're getting at. Obviously not having branches is a difference. What else are you interested in? You can have salary paid into an account and shop with a Visa debit card. I haven't had an account with the big 4 for decades.
Salary, shopping etc, you know the usual purpose. All this time you were with ING?
I started with them in 2001, with a high interest savings account, then term deposits, and opened an everyday account with a Visa debit card in 2009. Prior to that, most of my banking was with a credit union for many years (I still have an account with the credit union, but don't use it much).
Wow, nearly convinced! One question, how do you withdraw small cash amount without giving the fee? At supermarkets?
Yes, I mostly get cash out from supermarkets.
ING can work fine for an everyday bank. Yes there are no branches, but you can do 'Bank at Post' at some post offices to deposit cheques etc (or just mail them in).
With regards to others mentioning the $200 withdrawel limit, this is correct, however I know of multiple people who have had this waived and can withdraw any amount from any atm and have the atm fee refunded. So withdraw $20, pay no fee anywhere! These people do have mortgages with them however, so it might be related to that.
You can also get Cash Out of any amount without a fee too, ATMs are not the only way to get cash from the account.
'Better still, he can use it when he goes back home without getting slapped for international transactions.' <- THIS
If he's just here on working holiday etc, I think this is probably best way to take money earned in Australia back home.
Im with CBA and not student. they don't charge you any fee as long as you deposit your salary in there.
Just to clarify, the fine print says a minimum of $2000 per calendar month.
Unless they are under 24\21 where different rules apply.
Source: https://www.commbank.com.au/personal/accounts/transaction-ac…
NO HEAD ACHE SOLUTION
NAB Classic Banking is the pick of the big four.
Otherwise as per other posts here ING (or Citibank if making lots of foreign currency purchases).
They are a joke tech wise. Were you double billed a fortnight ago?
No I wasn't. The big 4 banks have 80% of the total market share, so any troubles with them makes the news. All the others that make up 20% - not so much.
Were there any complaints in OZBargain about NAB's double billing ?
OZ Bargainers have had this to say about HSBC https://www.ozbargain.com.au/node/132609
Nothing to do with product or service but chilling none the less The Guardian
If his monthly salary deposit exceeds $1900 (or thereabouts), Bankwest doesn't charge any account keeping fee. Plus, you can use any of the Big 4's ATMs without paying any fee.
Yeah gotta deposit $2000 per month to keep the BankWest account free. One of the benefits of BankWest is that you can choose between three accounts:
I switched all my banking to BankWest a few years ago - couldn't be happier with their customer service and services generally.
How is it that BankWest can offer free no ATM fees with major banks but none of the major banks can do the same?
For banks other than CBA, the ATM charges a fee and Bankwest pays it for you (you see this in your account). For CBA, which owns Bankwest, there is no fee regardless.
Foreign? You mean like an alien?
Gringotts is the bank for you.
Really? I prefer Braavos
NAB.
I keep all my money in an iSaver and leave $0.00 in my transactions account.
I do ATM withdraw over-draft with NO FEES, and then when I get to a computer I transfer money back from the saving account within the same day resulting in no interest charge.
I hope you don't leave a lot in that iSaver, the rate isn't great…
What would be a better savings account?
Considering all the other ones are only introductory rates.
I think I'm getting 3.7%
He would have to recommend a much smaller bank that doesn't have a decent ATM network as 3.7% on the iSaver is the best or equal to the best fee free savings account from the big 4.
It's just a pain to have to walk into a branch every 3-4 months to request the 3.7% interest rate as it goes down to 2.5% until you put in a request (it's like that for me at least).
It's much better than those banks that have a 4-5% rate for the first few months and then go back to 2.5% until you close and open another account. It's a lot easier to wait in line for a few minutes a few times a year than close and open accounts twice a year.
UBank Ultra + USaver = 4.37% at the moment. You have to deposit $2k per month but this can be shuffled from another account and back. Otherwise a standard USaver is 4.01% with a $200 p.m. deposit, which again can be shuffled back and forth. You can link it to your NAB everyday if that's your thing.
The UBank Ultra account gives you a NAB Visa Debit card which has fee-free access at any NAB/RediATM, so is the same as a NAB card.
And UBank is a division of NAB so hardly a "small bank"…
EDIT: spelling…
You need to deposit $2K+ to qualify for cashback, and ING's stupid $200 restriction is retarded. As others have said Citibank, or HSBC if you don't mind the forex fee. The customer service thing I've never run into. Everytime I call they are polite and actually try to fix your problem(s). What do you need branches for? People coughing and sneezing all over you as you queue up …
Don't forget there's currently a bonus for opening a HSBC account as well… see https://www.ozbargain.com.au/node/148440
And even bigger bonus for opening ING account plus 5% cash back on Visa Pay Wave…see https://www.ozbargain.com.au/node/145879
My setup:
Other a/c I have at the moment:
Tip: if you juggle your salary around do it in the mornings and it'll arrive on the same day.
Comm bank is free if you deposit salary. I don't love them but the convenience is hard to beat.
OP - most important thing is what features you need in the account.
For example:
If you regularly pull out money, spend a week observing who has ATMs where you frequent.
Do you often need to deposit or use a teller? Then who has branches nearby?
Do you travel much, or buy things online? Then you'll want something with low fees for that.
A painful reality is that there's no perfect bank account that suits each situation. Sometimes you'll want products from a few banks/providers to cover all your requirements.
Here's some 2cents anyway:
Personally, I think CBA are the best for convenience (they have the most ATMs and branches around where I live/work) - but you'll need to deposit 2k monthly for them to not charge fees. They're also quite visibly leading in new technologies (good internet banking with instant updates, "cardless cash" ATM withdrawals, phone payments).
Bankwest are also very good, but have the same deposit condition as CBA to avoid fees. Their accounts tend to have nicer perks, and still have access to CBA ATMs; however they have less branches than CBA in the Eastern States (although the ones they do have tend to be open at un-bank-like times, like Sundays!)
Citibank are excellent value for money (free for everything!), and allow you to use Westpac ATMs (which I rank second behind CBA). They have very few branches, but do allow you to deposit at NAB branches and post offices. The biggest downside of Citibank is their internet banking is a bit quirky, delayed (visa transactions can take a few days to appear), their call centres are offshore and not the easiest to deal with.
NAB are decent. If you want big-four with no minimum deposits or fees, go with them. I think that their ATM network isn't as comprehensive as CBA or Westpac, though.
ING Direct seem to have many good reviews. I haven't used them a great deal; but if you can work with the $200 withdrawal minimum for ATMs, or getting cash out at supermarkets, it seems to be pretty good.
I've tried HSBC (they bribed me with gifts of money and iTunes cards!), but really there's nothing special about them over any other account. I'd skip them on the basis of there being better options around.
I'd suggest that whoever you go with for your transaction account, you consider UBank for parking your savings. Aside from accounts with introductory rates, they tend to have the best ongoing interest rate for savings.
His decision will be either NAB or ING, because he likes it no string attached ;)
Try to convince him of opening an account with both then. There's no reason for him to only open one bank account, especially when there are cash incentives and the accounts have no monthly or inactivity fees.
Can't lose really - get $75 for trying out ING (ignoring the 5% cashback if done by 30 June) . The application in my experience takes about 10 minutes, get approved instantly if you supply drivers license/medicare info otherwise just need to visit a post office.
And just because he can, he might as well open a NAB account to try it out, what's there to lose (especially since you're helping him and sounds like you know what you're doing).
That way if the restrictions of either account are not to his liking, he can just close the other account (or leave it open and not use it) without being stung on monthly fees like (most of) the other options around!
I like the way you think! :)
National bank dont charge fees
I find it interesting how nobody even bothers to mention ANZ in all of this. Their accounts and products are such poor value. They don't even waive the $4 monthly account fee if you deposit your salary, like Westpac, CommBank and BankWest do. How they still have a viable retail banking operation in Australia I don't understand.
yes they do..
Open an ANZ Access Advantage account and enjoy easy, secure banking.
tick
$0 monthly account service fee if you deposit at least $2,000 a month2, or if you meet our other eligibility criteria3 (normally $5 a month).
http://www.anz.com/personal/bank-accounts/everyday-accounts/
but yes interesting there is no mention
Ah good, they have finally gotten on board with the rest of the Big 4 then. This certainly wasn't the case when I was looking to move from ANZ when I graduated in 2010.
Ridiculous how their fee is normally $5 per month…why is their account worth more than CBA when they have less ATMs and much poorer internet banking? And you don't even get the advantage of fee-free banking when using ANZ in NZ?
Such a shit bank.
Thanks for the tip about NAB (although the confirmation e-mail is taking a while - is it an actual human confirmation I'm waiting for?). I've been threatening to leave ANZ for a long time but I prefer POLI transfers to avoid Jetstar booking fees and a reliable backup to my Citibank card when overseas.
If your friend plans to make overseas purchases or travel the Citibank card is absolutely essential. When I backpack I prefer not to withdraw more than $200 at a time and "most" Australian banks will charge you a whopping $4-5 + >2.5% (Citibank charges "nothing" but I assume their exchange rate is in their favour ~1%?). So I might save $40 on $1000 in expenses.
Of course HSBC and ING are other free options will kickbacks going at the moment.
Citibank charges spot VISA rate when you make withdrawals from foreign ATMs. They don't claw back much if anything by giving a worse exchange rate than you would otherwise get on a fee-laden foreign ATM withdrawal from one of the Big 4 banks.
Thanks I think someone mentioned that in another thread a few months ago and I forgot already. I think at the time I couldn't find a reference but it makes sense.
I suppose in some cases you could come out ahead of the market rate at the point of transaction (especially since the actual conversion could occur the next day or at a later date, though I'm not sure how long ATM transactions normally take to process versus merchant transactions).
For anyone interested in VISA rate trustworthiness (summary: pretty good), you could check out http://theinquiringinvestor.com/2013/10/07/how-does-visa-cal…
ING Direct with 5% cash back and free $75 for signing up. No fees. Physical cash deposits through Australia Post, withdrawals via Post/Woolies/Coles cash out. 5% cash back. Need I say more?
Open a Commonwealth MyWealth account https://www.mywealth.commbank.com.au/, it's free and offers you a master debit card, just like the regular CBA everyday transaction account, but without the $5 monthly fee.
Well guys, he went with ING and from the signup page he was impressed with their internet banking system! Thanks everybody.
NAB
http://www.nab.com.au/personal/accounts/transaction-accounts…