Tips for banking in Australia

Learning how to bank in Australia can take a while as it may be very different to your home market.

You may be wondering how everything works, what you need to open a bank account or what credit cards in Australia are available once you're there. So we’ve compiled this overview of the banking products available, what to expect, and tips on what to do before you arrive.

There are 5 main banking products in Australia, each with different types of accounts you can choose from.

Also known as current or checking accounts, you can use these accounts for deposits, withdrawals and payments. You typically don't earn interest on a transaction account. 

They normally include a debit card for cash withdrawals and cashback and are used for online and contactless shopping. Just wave your card, smartphone or watch for tap-and-go purchases. Most debit cards can be paired with a digital wallet like Apple Pay or Google Pay.

You can also open a foreign currency account, which lets you transact in up to 10 different currencies.

Savings accounts aren't usually used for daily banking but you can earn more interest on your deposits. Bear in mind that you may have to pay tax on any large amounts of interest you earn.

Term deposit accounts, or fixed deposit accounts, are a type of savings account. They offer a fixed interest rate if you keep your money in the account for a set time, usually between 1 month and 5 years. A minimum deposit is normally required. You may have to pay a fee or penalty if you break your term deposit before the maturity date.

All major credit cards are widely accepted in Australia. Merchants often add a surcharge on credit card purchases, which can be from 0.5 to 2.0%. 

A credit card lets you buy something now and pay for it later. If you can’t pay the full balance when you get your statement, you can choose monthly instalments – but you'll pay interest on what you owe. Remember that credit card debt has a high interest rate and is calculated daily.

There are different types of credit cards in Australia, each with their own features, benefits, and lending criteria. You can apply for a low rate credit card which offers a low interest rate, or one that has rewards. These can include airline points, air miles, cashback, access to discount programmes, and more.

Explore: How a credit card works

A home loan, also known as a mortgage, is a long-term loan agreement from a bank to buy a primary or investment property. The most common types of home loans in Australia are variable and fixed rate home loans. A typical mortgage is 30 years but you can choose a shorter loan term if you wish.

When deciding on a mortgage, think about factors like the interest rate, loan term, fees, and what deposit you need to pay. 

Whether you’re a first-time home buyer or looking to grow your investment property portfolio, explore and compare our range of home loans.

Unlike a home loan, a personal loan isn't necessarily tied to an asset like a property. This is what's called an unsecured loan.

You can use a personal loan to help pay for things like a trip, a wedding, or home renovations. 

The interest rate and loan terms vary but typically the interest rate will be higher than a mortgage.

Learn more about the different ways you can use a personal loan.

Foreign exchange, also known as forex or FX, involves converting one currency into another, for instance from your overseas account to your bank account in Australia. The exchange rate changes constantly, so keep track of it before converting. 

Find out more about exchanging foreign currency as well as international transfers and investment opportunities.

Australia is a mature investment market with its own stock exchange (ASX) and access to most other stock exchanges around the world. You can buy most of the usual investment products including shares, Exchange Traded Funds (ETFs), managed funds, bonds, and many more advanced investment products.

Opening an Australian bank account as a non-resident requires proof of identity. You'll need to provide primary and secondary documents which can include your passport, national ID card or driver’s licence. Eligibility requirements vary according to the type of account you want to open.

With HSBC you can open a bank account in Australia while still overseas, but most banks require you to be in the country.  

Explore: Opening an Australian bank account from overseas

Once you’ve opened your Australian bank account, you can:

You can transfer funds quickly and easily between Australian bank accounts using online and mobile banking. International transfers may incur a fee.

Domestic transfers

You'll need the recipient's Bank State Branch (BSB) and bank account number to transfer money. BSB numbers include the bank code, branch and address information. They're unique to Australia and are the same as a sort code in the UK, or Indian Financial System Codes (IFSCs).

International transfers

The BIC (Bank Identifier Code) and SWIFT (Society for Worldwide Interbank Financial Telecommunication) code systems are used for incoming transfers. You can get HSBC SWIFT code and Australia branch listing information on our Receiving money page.

In Australia, most employers deposit your salary every fortnight or every month. Many companies will only use a local Australian account. In most cases, your salary will have already been taxed.

There are 2 simple ways to pay your bills: 

BPAY® - an electronic bill payment system that allows you to make payments through your bank quickly and securely

Direct Debit - you can give a company or merchant authority to debit your account for each bill. This means you won't have to worry about missing a payment - but it can be complicated to cancel

Explore: Easiest ways to pay your bills

Most Australians pay for goods using tap-and-pay with their credit and debit cards. It's also common to use mobile phones and smart watches to make payments. Cash usage has declined.

Using your banking app, you can easily transfer money between your own accounts or to other people. Once you have someone set up, most payments can be completed on the same day.

With HSBC, you can: