Banking in Australia   The number of trading banks operating in Australia is growing. As well, there are savings banks, merchant banks and credit union based banks. They are listed in the Yellow Pages telephone directories. The Big 5 banks in Australia include National Australia Bank, the Commonwealth Bank, Westpac, ANZ and St George.   The banks in Australia offer many services and flexible account options and can design individual plans to help customers achieve their goals. Most offer a full range of services including consultative advice upon settling in Australia, multilingual speaking specialists, transaction and savings accounts, credit cards, student and international student specialised accounts, personal and home loans, insurance, financial planning, business financial solutions and more.   All bank transactions are computerised, with banks owning systems that process all banking actions. This makes banking relatively fast and efficient, and makes it easy to move money from one account, by phone, Internet or in person at the bank, to another.   As you begin your new life in Australia, and explore the financial options right for you, there are a number of key banking and financial terms which you will need to know. We have listed out some of these below, to help you understand banking in Australia, and to make those first few months easier for you.   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 country.   Cheques which are 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 as ‘Not Negotiable’.   To open a bank account it is necessary to provide proof of identity. To do this you need at least three forms of ‘proof’ such as your passport, birth certificate or driver’s license and a recent invoice with your address on it. Take them with you when you go to a bank to open an account.   Most banks offer holders of cheque accounts the following: n                   Access to automatic teller machines using a plastic card. Every card-holder has their own confidential PIN (Personalised Identification Number). Most machines are available 24 hours a day, seven days a week; n                   Direct crediting into accounts; n                   Direct debiting from accounts; n                   Statements mailed out regularly; n                   Access to overdraft funds; n                   Access to many services via the telephone n                     There are two kinds of cheque books. One has butts on the left of every cheque, the other kind has sheets in the front on which to record details of transactions in the account.   Cheque books have from 30 to 200 cheques, depending on whether the account is a business or a personal one.   For these services banks charge fees. 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 kept in the account. Others offer free accounts to people over a certain age. Cheque accounts may sometimes earn interest. These details vary from time to time.   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 fee 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 Accounts The traditional boundaries between cheque and savings accounts 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 saving for a special purpose. Access to the money through automatic teller machines may not be possible. There are also accounts specifically targeted towards children which have little or no fees.   Term Deposits: Money is placed in a special account for an agreed term, which can be months or years. 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. Whether you require furniture, cars or education, personal loans can assist you to gain access to what you need faster, helping you settle into life in Australia. Banks require security for these loans.   Housing Loans: Known as mortgages, these loans are for much longer terms, often up to 25 years. Interest rates go 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 teller machines operated by banks. Money is transferred instantly from your account to the sellers account. Many retailers allow people to draw 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 Visa, Bankcard and Mastercard. A monthly invoice from the credit card company requires at least 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. You can visit www.national.com.au  for more information and to view a good range of credit cards.   Investing Banks are not the only source of investment. There are also items such as stocks, shares, government bonds, property, precious metals, jewellery, artworks, antiques, stamps and personalised car number plates. Before investing it is essential to get expert and trustworthy advice from people like bank managers, finance/investment brokers and financial planners – see the Yellow Pages phone directories.   Safe Custody Keeping valuable property, such as jewellery and large amounts of money in personal dwellings is not advisable. It is better to entrust them to banks. But not all banks offer their customers safe deposit boxes for the storage of valuable possessions. Most banks, however, offer safe custody services. Some banks restrict the size of each article and charge a handling fee each visit, other banks have no restrictions.   Migrants Many banks offer special migrant services with dedicated staff to handle accounts and queries from those recently arrived in Australia. These services differ from bank to bank. All banks are happy to answer any queries.   Language speaking specialists Banks in Australia are increasingly aware of the need to offer migrants in-language speaking specialists to assist customers with their banking needs in their own language. All banks offer such services to their customers, and are proud of their multicultural teams, dedicated to assisting customers in their own language. You can ask at any bank branch for the location of branches which has bankers who speak your language. Most banks offer comprehensive in-language brochures and some offer websites with other information including in Chinese, Vietnamese and Korean.   International Students Similarly, many banks offer specialised services for students and international students.