Complete Banking Guide for Backpackers in Australia: No Fee Bank Accounts & Money Management (2025)

As a backpacker on a Working Holiday Visa (WHV) in Australia, one of your first essential steps is opening a bank account. Not only will it help you manage your money while working, but it also ensures you avoid foreign transaction fees, receive your payments without delays, and access a range of banking services tailored for your needs.

In this guide, we’ll break down everything you need to know, from the best no-fee bank accounts to how to transfer money internationally. Plus, we’ll share practical advice, timeframes, and tips to help you navigate the Australian banking system seamlessly.

Table of Contents

• Why Open a Bank Account in Australia
• When Should You Open Your Bank Account?
• Which Bank Should You Choose?
• How to Open a Bank Account: Step-by-Step
• Using Your Bank Account: Practical Tips
• Transferring Money Internationally: What You Need to Know
• Closing Your Bank Account in Australia
• Conclusion

Why Open a Bank Account in Australia?

Having an Australian bank account isn’t just a convenience – it’s essential for your working holiday. Here’s why:

• Receive Your Salary Without Delays: Most employers in Australia require you to have a local bank account for payroll. Without one, you could face delays in getting paid.
• Avoid International Fees: If you use your foreign account, you’ll face extra fees for ATM withdrawals and purchases. By having an Australian account, you’ll avoid unnecessary charges.
• Free ATM Access: Many banks offer free ATM withdrawals within their network, meaning you won’t have to pay every time you need cash.
• Easy Money Management: Having a local account simplifies budgeting, helps you track spending, and makes handling payments more convenient.

Example: When you start working in Australia, your employer will likely ask for your Australian bank account details to deposit your wages. Without one, you’ll face delays in getting paid, which can be problematic if you rely on your wages for travel or accommodation costs.

When Should You Open Your Bank Account?

You should open your bank account as soon as possible after arriving in Australia, though you can start the process online before you arrive.

• Before You Arrive: Some banks allow you to start the application process online, which speeds things up once you land. You’ll need your passport, proof of visa, and a local address (even if it’s a hostel or a friend’s place).
• Once You Arrive: After arrival, it typically takes 1-2 days to complete your application. You’ll need to visit a branch with your documents to verify your identity.

⚠️ Tip: If you arrive on a weekend, be aware that banks may be closed. It’s best to complete the process during weekdays when branches are open.

Which Bank Should You Choose?

When choosing a bank, it’s important to consider your needs. Here’s a breakdown of the top four banks for backpackers in Australia, with their advantages and disadvantages:

1. Commonwealth Bank
   • Monthly Fee: $0 for the first 12 months, $4/month after (unless you deposit $2,000/month)
   • Key Features: Free withdrawals at CBA ATMs, solid mobile app
   • Pros: Large ATM network, reliable customer service
   • Cons: Fees after 12 months, not the best for digital banking
2. NAB (National Australia Bank)
   • Monthly Fee: $0
   • Key Features: No monthly fees, great online banking
   • Pros: Free online banking, no fee on international transfers
   • Cons: Limited ATM access in remote areas
3. ING
   • Monthly Fee: $0
   • Key Features: Free worldwide ATM withdrawals (conditions apply)
   • Pros: No foreign transaction fees, mobile-focused
   • Cons: Must meet conditions for free ATM withdrawals
4. Up
   • Monthly Fee: $0
   • Key Features: Easy mobile app, no fees, instant notifications
   • Pros: 100% mobile banking, simple interface
   • Cons: Limited physical banking options

‍

💡 Best for Digital Nomads: If you’re a digital nomad or prefer managing your finances entirely through an app, Up is an excellent option. It’s fully online, provides real-time spending notifications, and charges no fees.

How to Open a Bank Account: Step-by-Step

Opening a bank account in Australia is straightforward. Here’s how to get it done:

1. Choose Your Bank: Pick the bank that fits your needs based on ATM access, fees, and mobile banking features.
2. Gather Your Documents:
   • Passport (original + photocopy)
   • Visa (physical or digital)
   • Proof of address (hostel or friend’s address works)
   • Local phone number (getting an Australian SIM is helpful)
3. Start the Process Online: You can start the application online with most banks to save time once you arrive.
4. Visit the Branch: Once you’re in Australia, visit a bank branch with your documents to verify your identity. The process usually takes 30 minutes.
5. Wait for Your Debit Card: Your card will arrive in 5-7 business days. Some banks offer express delivery for an additional fee if you need it sooner.

⚠️ Pro Tip: If you need your card urgently, some banks offer express delivery for a small fee.

Using Your Bank Account: Practical Tips

Once your account is open, here’s how to make the most of it:

• Download the Mobile App: All the major banks offer mobile apps. Make sure to download the app as soon as your account is activated to track your spending and make transfers on the go.
• Set Up Alerts: Activate transaction alerts via SMS or email so you’re always informed of your balance and transactions. This helps prevent surprises and fraud.
• Withdraw Cash for Free: Stick to ATMs within your bank’s network to avoid fees. Commonwealth and NAB have extensive ATM networks across Australia.

Transferring Money Internationally: What You Need to Know

Sending money internationally can be costly if you use traditional banks, but there are cheaper, faster alternatives. Here are the top services for transferring money:

1. Wise (formerly TransferWise)

• Fees: 0.5-1% of the transfer amount
• Speed: 1-2 days
• Why It’s Great: Wise uses the mid-market exchange rate, which means you get the best deal possible. Transparent fees with no hidden costs.

2. Revolut

• Fees: Free for transfers up to $1,750/month
• Speed: Instant transfers to other Revolut users; 1-3 days for bank transfers
• Why It’s Great: Revolut allows you to hold and exchange multiple currencies with low or no fees for international transfers.

Example: If you’re sending $1,000 AUD to the UK, Wise will charge you around $10 in fees. If you’re eligible, Revolut allows you to send the same amount for free.

Closing Your Bank Account in Australia

If you’re leaving Australia or switching banks, here’s how to close your account properly:

1. Clear All Transactions: Make sure there are no pending payments or fees.
2. Visit the Bank: Go to the branch to request the account closure. It’s usually a simple process.
3. Withdraw Remaining Funds: Transfer any remaining money to another account or back home.
4. Return Your Debit Card: Some banks require the return of your debit card when closing the account.
5. Get Confirmation: Ask for written confirmation that your account has been closed.

💡 Tip: Before closing your account, ensure that any automatic payments, like gym memberships or subscriptions, are cancelled or redirected.

Conclusion

Opening a bank account in Australia is an essential step in making your working holiday smooth and stress-free. By choosing the right no-fee bank account, using cost-effective money transfer services like Wise and Revolut, and following key security tips, you’ll keep your finances organized and secure. Whether you opt for NAB, Commonwealth Bank, ING, or Up, find the bank that works best for your travel style and needs.