BANKING IN AUSTRALIA

The a number of trading bands operating in Australia as well, there are savings banks, merchant banks, and credit union based banks. They are listed in the Yellow Pages telephone directories or can be located online.

Banks offer many services and flexible account options and can design individual plans to help customers achieve goals.

All bank transactions are computerized, with banks owning systems that process all banking actions. This makes banking relatively fast and efficient, and makes it easy to move money form one account, by phone, internet or in person at the bank, to another.

CHEQUE ACCOUNTS

Cheques are equal to cash, but much safer. Most Australians use cheque accounts for day-to-day money management. A cheque is a quick and easy way to pay for anything at any time, anywhere in the county.

Cheques which are not crossed 'Not Negotiable' must be paid into a bank account, with the money not available until the cheque has been cleared as valid. Payment can be stopped on stolen cheques. Notify the police and your bank immediately if you lose or have your cheque book stolen.

Most people accepting cheques require some form of identification such as a credit card, driving license or passport. Any identification must show the signature of the person signing the cheque. Some businesses will cash personal cheques as long as the cheque is not crossed 'Not Negotiable'.

To open a bank account it is necessary to provide proof of identity. The easiest way is to take your passport with you when you go to a bank to open an account.

Most banks offer holders of cheque accounts the following services:
Access to automatic teller machines using a plastic card
Every holder has their own confidential PIN (Personalised Identification Number) Most machines are available 24 hours 7 days a week
Direct crediting into accounts
Direct debiting from accounts
Statements mailed out regularly
Access to overdraft funds
Access to many services via the telephone

For these services bank charge fees do apply. Ask several banks for details before opening an account as the fees do differ. Some banks offer free cheque accounts if a certain amount of money is maintained in the account. Others offer free account to people over a certain age. Cheque accounts may sometimes earn interest. These details vary from bank to bank.

OVERDRAFTS

Overdrafts are usually available as part of an account. A limit on the amount is set and interest must be paid while the loan exists. A small monthly fees is also often charged for having access to an overdraft, even if no money is borrowed. Banks require some sort of collateral to secure an overdraft.

SAVINGS ACCOUNT

The traditional boundaries between cheque and savings account are becoming less defined, but there remain a number of accounts designed to suit different savings plans:

Ready access accounts: These are used when regular and frequent access to the money is required. A lower rate of interest is usually paid on these accounts. There is easy access to the money through automatic teller machines.

TARGET SAVINGS ACCOUNTS

These accounts normally offer a higher interest rate but there can be a charge each time money is withdrawn. These accounts are for more regular savings for a special purpose. Access to the money through automatic teller machines may not be possible.

TERM DEPOSITS

Money is places in a special account for an agreed term, which can be months or year. Interest rates on these accounts are higher again but if money is withdrawn earlier than agreed a much lower rate is paid. The money is not accessible through automatic teller machines. Interest is usually calculated daily on total balances.

LOANS

Most banks offer two types of loans:
Personal Term Loans: These loans are usually over a short, fixed term and attract a set rate of interest. Furniture, cars and education are examples of what these loans are used for. Banks require security for these loans.

Housing Loans: Know as mortgages, these loans are for much longer terms, often up to 30 years. Interest rates for up and down with trends in the general money market.

EFTPOS

Many shops, liquor stores, supermarkets and service stations allow customers to pay for purchases through the EFTPOS system (Electronic Fund Transfer at Point OF Sale). This uses the same personal PIN number as used in automatic tell machines operated by banks.

Money is transferred instantly from the purchases account to the sellers account. Man retailers also allow people to draw small amounts of cash beyond the price of the goods they are buying. The limit is set by the retailer - some give up to $20; others up to $200.

CREDIT CARDS

Common credit cards in use are Bankcard, Mastercard and Visa. A monthly invoice from the credit card company requires at lease part payment of the debt. A high rate of interest is paid on any outstanding amount.

Many businesses also accept other cards such as American Express and Diners Club. The full amount of these cards monthly invoice must be paid.

INVESTING

Banks are not the only source of investment. It is essential to get expert and trustworthy advice before investing, It is best to seek the advice of a recommended Financial or Investment Broker.

MIGRANTS

Many banks offer special services for migrants, and have dedicated staff to handle accounts and queries from those recently arrived in Australia. These services will differ from bank to bank. All banks will be happy to answer any queries about their services and interest rates.