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BANK ACCOUNTS EXPLAINED

Bank accounts explained

There are so many different bank accounts around it can be tricky to know which one to choose. So here’s a quick breakdown of which account does what. Remember, before you open an account, it’s important to make sure you understand the details around fees, charges and any other requirements. All bank accounts will have a document called a Product Disclosure Statement – you will be able to find all the info you need in there. Take the time to make sure the account you get does what you want it to do.


Transaction Accounts

A transaction account is an account you can use for your everyday spending. Money comes in. Money Goes Out. Transaction accounts generally don’t pay a great amount of interest, but keep your money accessible for you to use whenever you need it.


Savings Accounts

Savings Accounts tend to be designed to encourage you to keep your money in the account. They usually offer higher interest than a transaction account, and while your money is still available for you to access anytime, your access options might be limited – for eg if the account has no ATM card.


Bonus Saver Accounts
Like a turbo version of the Savings Account. These accounts offer you bonus interest when you meet a set of criteria. You might need to deposit a certain amount each month or you may not be allowed to make withdrawals from that account or possibly both.


Online Accounts
Like a savings or bonus saver account these account generally offer more interest than a transaction account, however they don’t have any physical branches, which may or may not be a problem for you.


Student Accounts

Some banks offer student accounts. These are usually accounts with reduced fees, sometimes with none at all, to give you a hand while you’re studying.


Term Deposit Accounts

A Term Deposit is an account that offers you a set interest rate if you leave your money in the account for a set time. For example you might earn 3%pa if you keep your money in the account for 6 months. Withdrawing your money before the 6 months are up may result in you not earning any interest at all. 


 

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Any advice in this information is general and has been prepared without taking account of your particular objectives, financial situation or needs. Before you act on any advice you should consider whether it is appropriate for you. IMB Ltd trading as IMB Bank ABN 92 087 651 974 AFSL/Australian Credit Licence 237 391