\n <\/a><\/a>\n <\/p>\n<\/div>\n\n\n\n <\/p>\n\n\n\n Banks offer simple transaction accounts as well as a range of products like credit cards and loans. These products usually come with fees and obligations, and may have \u2018hidden\u2019 costs in the \u2018fine print\u2019.<\/p>\n\n\n\n Banks also offer automated services that make life and saving simpler, but also come with inbuilt risk. Do you need to stress? Keep reading to learn about the importance of informed decision-making and where to go when you need help with your money business.<\/p>\n\n\n\n Having a bank account helps to keep your money safe. With Australia\u2019s banks, all customers\u2019 savings up to $250,000 are insured in case things go wrong. <\/p>\n\n\n\n Transaction accounts are everyday spending accounts that come with a debit card that you can use to buy things and withdraw cash. They\u2019re also known as \u2018bank accounts\u2019.<\/p>\n\n\n\n Savings accounts are for saving money over longer periods, usually come with better interest rates, and sometimes have withdrawal restrictions or interest rate boosts for adding more money. These types of accounts are usually easy to manage and should allow you to use your money safely without worry.<\/p>\n\n\n\n Transaction and savings accounts typically charge no or low fees. If your account comes with fees, you can check with your bank if there are other options with lower fees or no fees, or you might want to look at offers from other banks. <\/p>\n\n\n\n If your primary income is from Centrelink payments or you have a Low Income Healthcare Card, your bank should be able to give you a no-fee or low-fee account.<\/p>\n\n\n\n 📌 See our dealing with Centrelink<\/a> page.<\/strong><\/p>\n\n\n\n A term deposit account is a type of saving or investing<\/a> account that earns interest over a defined period of time (the \u2018term\u2019) at a fixed interest rate. Term deposits typically offer a higher interest rate than regular savings accounts, and you can\u2019t access the money until the term is over. <\/p>\n\n\n\n Term deposits are a low-risk way to invest and build your money. <\/p>\n\n\n\n Term deposits either roll over automatically at the end, which means the earned interest is added to the principal sum for the next deposit period, at a new interest rate. Or you can withdraw the interest and more from the account. <\/p>\n\n\n\n While term deposits are a low-risk option, the amount you earn depends on the interest rate. So if your rate is low, your money may not increase very quickly. <\/p>\n\n\n\n Since a term deposit is for a fixed term, you may end up locking your money into a long-term deposit at a low rate of interest, while interest rates elsewhere might increase in the meantime. <\/p>\n\n\n\n The other risk is that if inflation is high and the interest rate on your deposit is low, then the real purchasing power<\/a> of your money may not actually be increasing, even if your term deposit balance is higher after added interest. <\/p>\n\n\n\n A joint account<\/a> is a type of account that more than one person can access. Transaction accounts, savings accounts, or term deposit accounts can all be held jointly. <\/p>\n\n\n\n You might take out this sort of account for several reasons. For example, you might:<\/p>\n\n\n\n With a joint account, other people can access any funds you put into the account. Be sure to think carefully about who you start a joint account with, and be wary when anyone pressures you to open such an account. <\/p>\n\n\n\n When debt is connected to a joint account, everyone who owns that account is responsible for the debt. <\/p>\n\n\n\n If another person is trying to control your finances, this can be seen as a form of financial abuse, which is also known as economic abuse.<\/p>\n\n\n\n 📌 See our financial abuse<\/a> page.<\/strong><\/p>\n\n\n\n Credit cards<\/a> are commonly used in Australia and can be useful when making a big purchase of an essential item or when covering an unexpected cost. <\/p>\n\n\n\n A credit account with your bank allows you to spend money in advance. You\u2019re then expected to pay that money back to the bank with interest. Credit accounts come with a \u2018credit\u2019 card, whereas transaction accounts come with a \u2018debit\u2019 card.<\/p>\n\n\n\n A bank loan is similar in that you borrow money in advance and must pay it back to the bank with interest. The difference between a loan and credit is that a credit card can be used at any time for spending on whatever you\u2019d like, while loans are usually taken out for a specific purpose and approved by your bank on a case-by-case basis. <\/p>\n\n\n\n The risk with a credit card is that you end up going into more debt than you\u2019re able to pay off. So when choosing a credit account and using credit, think about not only your immediate need but also how you\u2019ll manage the debt without going over your head.<\/p>\n\n\n\n You might have seen comparison websites for things like loans<\/a>, credit cards<\/a>, insurance<\/a> or superannuation funds<\/a>. These sites offer explanations of products, reviews and ratings, and price comparisons. They can also help you to decide what\u2019s best for you. Though before you act on any recommendation, it\u2019s important to know how comparison websites work. <\/p>\n\n\n\n A direct debit is an automatic transaction where money is withdrawn from your account on a regular basis without any authorisation needed from you after the first transaction. <\/p>\n\n\n\n Direct debits are often used to pay businesses for services like electricity, gas, water, internet and phone bills. Some utility retailers offer a discount on their plans if you pay by direct debit.<\/p>\n\n\n\n You must sign a \u2018direct debit authority form\u2019 when setting up a direct debit. This gives the business the authority to access the amount owing on your bill from your bank account. If the bill changes from month to month, the debit also changes. <\/p>\n\n\n\n With an \u2018automatic transfer,\u2019 you can tell your bank to send money to a company or person, once or on a regular basis, without the need to sign a form. The difference is that you\u2019re giving permission for a fixed amount to be transferred, not an amount that may change from time to time, like an electricity bill. <\/p>\n\n\n\n 📌 For other types of electronic and digital banking information see our ways of paying<\/a> page.<\/strong><\/p>\n\n\n\n Some people use automatic transactions as a budgeting tool \u2013 for example, to make sure money goes to where it needs to go as soon as it\u2019s available. <\/p>\n\n\n\n However, you could lose track of any transactions you\u2019ve set up and pay more than you intend if they aren\u2019t budgeted for. You might even overdraw your account and be charged fees for this and\/or late payment fees by providers. <\/p>\n\n\n\n Cancelling a direct debit <\/a><\/p>\n\n\n\n Direct debits from savings and cheque accounts<\/a><\/p>\n\n\n\n Direct debits from credit cards<\/a><\/p>\n\n\n\n All banks give you the ability to manage your accounts online, which can be more convenient and faster than waiting on the phone or in line at a bank branch. <\/p>\n\n\n\n You can manage your accounts from anywhere there\u2019s an internet connection. So for people without online access, internet banking is not an option. <\/p>\n\n\n\n Banks run very secure websites as they are required by law to keep their customers\u2019 money safe. But as with all things on the internet, you should exercise caution and make sure that your account is secure. For example, making use of features like \u2018two-factor authentication\u2019 and also setting up a unique password is wise.<\/p>\n\n\n\n Find government short courses on using online banking<\/a><\/p>\n\n\n\n 📌 See our paying bills<\/a> and protect yourself online<\/a> pages.<\/strong><\/p>\n\n\n\n The law entitles consumers to be treated fairly by the banks. As it relates to your money, your rights include:<\/p>\n\n\n\n![\"Woman](\"https:\/\/studiokettle.com.au\/wip\/living-costs\/wp-content\/uploads\/Investing_v002.png\")
<\/figure>\n\n\n\nTransaction and savings accounts<\/h2>\n\n\n\n
Transaction accounts<\/h3>\n\n\n\n
Savings accounts<\/h3>\n\n\n\n
What about fees?<\/h3>\n\n\n\n
Term deposit accounts<\/h2>\n\n\n\n
How does it work?<\/h3>\n\n\n\n
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What happens when the term ends?<\/h3>\n\n\n\n
Are there risks?<\/h3>\n\n\n\n
Joint accounts<\/h2>\n\n\n\n
Benefits of joint accounts<\/h3>\n\n\n\n
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Is it right for you?<\/h3>\n\n\n\n
Credit cards and loans<\/h2>\n\n\n\n
How does it work?<\/h3>\n\n\n\n
Good to know <\/h3>\n\n\n\n
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How is credit different to a loan? <\/h3>\n\n\n\n
What you can do about risk<\/h3>\n\n\n\n
What to look out for<\/h4>\n\n\n\n
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Comparison sites<\/h2>\n\n\n\n
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Direct debits and automatic transfers<\/h2>\n\n\n\n
What it\u2019s for<\/h3>\n\n\n\n
Is an automatic transfer the same thing? <\/h3>\n\n\n\n
How it helps and otherwise<\/h3>\n\n\n\n
Tips for paying safe<\/h3>\n\n\n\n
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Where to find information<\/h3>\n\n\n\n
Online banking<\/h2>\n\n\n\n
Is it safe? <\/h3>\n\n\n\n
Where to find information<\/h3>\n\n\n\n
Banking consumer rights<\/h2>\n\n\n\n