Transaction accounts: why pay fees?

Published on September 6, 2016 11:03 am, by

We’ve reviewed transaction data for our members, and you’ve been charged a fee for something you can do for free somewhere else.

Your account set up can influence your financial success. The number and types of accounts you have could be costing you. Transaction fees, ATM fees and overdrawn fees are all dollars that would be better off in your pocket than the banks’ coffers.

When it comes to changing accounts people are lazy. We tend to stick with what we’ve got. We think it’s inconvenient and somewhat painful. In reality, the worst of it is changing your payments over. And that’s easier than ever. Your old bank can give you a list of your automatic debits and your new bank can help you set them up. Just ask them how.

We’ve listed the 3 best transaction accounts we can find on the market (as at 19 Jan 17) and the conditions that will help you decide which one is for you!

The interest is nominal with the maximum currently 0.01%. We suggest you link a savings account, one that also has no fees, to get a higher rate for your savings.

And the 3 best transaction accounts for low fees are – 

Current at 19 Jan 2017

  • ING Orange everyday account*
  • ME Bank Everyday transaction account**
  • NAB Classic banking***

*ING Orange Everyday account

  • ATM fees are refunded immediately if you have deposited $1,000 into your account in the previous month
  • $0.00 overdrawn fees charged (though interest is charged on the overdrawn amount)
  • 0.00% interest is paid on this account
  • $0 account keeping fee

This account will suit you best if you deposit $1,000 per month into your ING Orange Everyday account and you want to use any ATM at no cost. Fees are refunded immediately.

**ME Bank Everyday transaction account

  • Overdrawn fee $15
  • ATM fees are not charged at Westpac, St George, Bank of Melbourne & Bank SA ATMs
  • ATM fees charged for using other ATMS are reimbursed within 30 days of the fee being charged
  • 0.00% interest is paid on this account
  • $0 account keeping fee

This account will suit you best if you never overdraw your account. There is no minimum amount you need to deposit.

You want to use any ATM you choose, even when you are charged you will be refunded.

**NAB Classic banking account

  • ATM fees are charged if use ATMs outside their network. Network includes NAB & RediATM
  • $0.00 overdrawn fees charged (though interest is charged on the overdrawn amount)
  • 0.01% interest is paid on this account
  • $0 account keeping fee

This account will suit you best if you overdraw your account and don’t want to deposit a minimum amount each month.

You will also need to be vigilant about the ATMs that you use as fees will apply.

Opening a new transaction account

Open an ING Orange Everyday account

Open an ME Bank transaction account

Click here to open a NAB Classic bank account

If you’re going into the branch:

  1. Take in 100 points of ID
  2. Changeover all your automatic payments and direct debits by either getting your new bank to do it (ask them how) or asking your old bank to provide you with a list of direct debits for the last 13 months
  3. Unless you are very sure that you have remembered everything we recommend leaving your old account open with some money in it for a month just in case

It’s easy with MoneyBrilliant to know exactly how much you are paying in fees & charges

All your bank fees will automatically categorise as the type they are – ATM fees, account keeping fees etc. We quickly and conveniently provide a 90 day tally of all these fees and charges combined.

It’s easy to customise to one type of fee, or a different time period along the right-hand menu so you can really see where your money is going.

What about my savings?

The interest rates on transactions accounts are low. Often those that have higher (bonus) interest have a set of rules that you need to adhere to, for the extra interest to be paid.

So think about your goals and your savings and find somewhere with a higher rate or return than a transaction account for those dollars.

Related Articles –
Credit Cards: finding the right one
10 ways to curb spontaneous spending
Knowledge is power: know where your money goes

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Jen is an experienced banking professional who loves wine, coffee, finding a bargain and of course her three beautiful children. Since Jen's first budget led her to buy a home at 20, Jen has passionately helped others to make better decisions with their money.

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