Checking Accounts

Here are some of the larger retail/consumer banks in Australia:

• ANZ
• Citibank
  
• Commonwealth
• HSBC
• National Australia Bank (NAB)
• St. George
• Westpac

When selecting a bank, keep the following factors in mind:

• What are the monthly/annual fees (most checking accounts incur a monthly fee, which increases if you exceed your allowed number of ATM withdrawals). There are various other fees one-off fees tacked on the monthly fees.
• Their hours, if they're open late (usually one day of the week) and on weekends.
• Internet banking/online bill pay.

Credit unions offer fewer services that retail banks, fewer locations, fewer ATMs, and less flexible opening hours. However, they also offer far lower fees. (e.g. http://www.sydneycu.com.au/page.asp?page_id=3976)

Savings Accounts

The banks listed above also offer savings accounts with competitive interest rates. Another notable addition is ING Direct (the brand should be familiar to Indians: ING Vysya Life), an online only bank with no fees/competitive interest rates.

Remittances/Sending money home

Yet to be researched.

Bills and Plastic

Payments can usually be made using one of the following:

• BPAY is a service provided by some banks, enabling customers to pay their bills over the telephone. It's a service developed and promoted by external financial institutions. In order to use it, your bank and biller both have to be enrolled/participants.

  You contact your bank and instruct them to pay a bill from an account you nominate (cheque, savings or credit card).
  Enter the following three entries using your phone's keypad:

  • the biller code: You choose the recipient of the funds by entering the desired BILLER CODE into your telephone keypad
  • your customer reference number: Your biller provides your reference/service account number
  • the amount: The amount payable should be entered via your phone's keypad.
• ATM card: PIN enabled card, usually used in-store and not over the phone
• Debit card: Accepted wherever credit cards are accepted, withdraws funds directly from your account
• Credit card: Payments are expected to be made within the next monthly billing cycle. If minimum payments are made, balance is carried over into the next billing cycle. If using these in place of loans, beware of spiraling interest payments.

Direct deposits

Most employers will request your bank account details to make direct deposits into your account. Otherwise, you can deposit checques at your bank's ATM (Automated Teller Machine).

Superannuation

Employers are mandated by law to pay 9% of your salary into a superannuation fund or RSA (retirement savings account). The fund can be one of your own selection, or one selected by your employer. The minimum frequency with which the payments are made into the fund are every quarter. A more frequent (preferable) payment would be at every pay date.

Superannuations are comparable with American 401K plans, and used to replace traditional pension plans. Funds management companies levy various fees (management, change of plan, etc.). Visit the Australian Tax Office's (ATO) website for more on superannuations.