Banking Downunder

10 Things to Know About Banking Downunder

1. In Australia the big four banks are Commonwealth Bank, NAB, Westpac and ANZ. In New Zealand the main banks are ASB, ANZ, National Bank, Westpac and BNZ. There are also industry specific credit unions and building societies. When choosing a banking institution you need to consider if they offer the products that will best suit your needs, whether they have a large national ATM network (Automatic Telling Machines - known as Cash Points in the UK) and whether they will be able to support your banking needs for the long term (e.g. Home loans).
2. Generally the accounts and services available in Australia & New Zealand are very similar to what you receive in the UK. Some of the accounts and services that may be available to you are: current accounts (every day spending accounts), high interest earning accounts, internet savers, rewards savers, term deposits, personal loans, credit cards, home loans, general & personal insurance and financial planning products.
3. In Australia and New Zealand there are many ways to access your funds. The most widely used method of payment is the EFTPOS system (Electronic Funds Transfer at Point of Sale), which is very similar to the chip and pin system in the UK. Generally Australians and New Zealanders pay for most things with their debit cards via the EFTPOS system as there can be charges for ATM use (please refer to point 5). Please also be aware that many merchants in Australia or New Zealand will charge a fee for using credit cards for payment; to eliminate these fees try to use your debit card for general spending. ATMs are also widely used, not just for cash withdrawals but for also making deposits and transferring funds between accounts. Australian and New Zealand banks have advanced Phone and Internet banking systems which can be used to transfer funds between accounts, transfer funds to third party accounts and for making bill payments. There are also large branch networks throughout Australia and New Zealand; general trading hours are Monday - Friday, 9.30am to 4.30pm, with some branches open on the weekend.
4. In Australia and New Zealand you will pay account keeping fees for your banking. You will generally pay between $4 - $6 a month in Australia, and $3 - $12 a month in New Zealand. This of course differs between banking institutions and depends upon the kind of account you hold. These fees can cover ATM use, branch transactions, internet banking transactions, phone banking transactions and debit card spending. You will usually pay extra for specialised services such as bank cheques or international money transfers.
5. Most banks will charge you for using other bank ATMs, so it is important that you choose a bank with a large ATM network. To minimise the fees you pay on your account, try and use your own banks ATMs and use your debit card for general spending. If you do need to use a different bank's ATM the average fee is $2.50 in Australia per transaction and $0.50 in New Zealand per transaction.
6. The credit system in Australia and New Zealand is quite different to the credit system in the UK. In the UK you have a credit history that builds up showing both your positive and negative history, which determines the amount of credit you can apply for. Whereas in Australia and New Zealand credit is applied for on an affordability basis and a 'credit history' is only recorded on negative reporting (i.e. defaults on utility bills, loans etc is all that is reported). It may even be possible to start applying for credit before you arrive depending on which bank you choose in Australia or New Zealand, with the bank looking at each individual's circumstances.
7. Accounts can be opened in Australia and New Zealand before you leave, this means you can have your finances in order before you go, ensuring there is one less thing for you to think about. Accounts can be opened online, over the phone, by mail, or in person...it all depends on the services that your chosen banking institution provides from the UK.
8. Making the most of your funds with competitive foreign exchange services will put you in a much better financial position for your move. The exchange rate you receive for your funds can mean a difference of a few extra thousand dollars, or enough extra to buy you a car. Monitoring exchange rates will not only educate you on the way the foreign exchange market works, but will ensure you know when the rate spikes...meaning you can send your funds at the best possible rate.
9. Things to remember before you arrive: If you are taking cash into Australia or New Zealand remember if you bring in more than 10,000 AUD/ NZD to the country you will need to declare it to customs. For more information on what you will need to declare in Australia click here and for New Zealand please click here. Generally it is much safer for you to send money to Australia or New Zealand via electronic methods, the funds will be received into your already established account, and will be ready to be accessed upon your arrival.
10. Remember to bring with you: 6 Months worth of statements for your bank accounts, home loans, credit cards and personal loans. This will help you when you do want to apply for credit to show your previous history. By the time you do come to apply for credit these statements may not be needed (as 6 months worth of history is required), but it is better to come prepared.

What is Commonwealth Bank of Australia and ASB Bank offering Customers?

• The ability to open bank accounts in the UK (the London Transfer Account - trading facility) and in Australia or New Zealand to enable you to transfer funds from the UK to your established retail account with either Commonwealth Bank or ASB Bank.
• No minimum deposit required on the London Transfer Account, and no account keeping fee. You pay a fee of £15.00 per foreign exchange transfer if your funds are £29,999.99 and under, transfers of £30,000.00 and over are complimentary.
• If you do not wish to use Commonwealth Bank's foreign exchange services we are able to establish retail accounts in Australia or New Zealand over the phone.
• Accounts are opened within 3 working days of receiving the account application.
• A response to enquiries within 24 hours of referral.
• A dedicated International Customer Services team in London and teams in each state of Australia and throughout New Zealand.
• Mortgages can be pre-approved before departure depending upon your circumstances.

For more information on our accounts and services please contact our London based office on 0845 074 2660, Mon - Fri, 9am - 5pm, via email: commbankuk@cba.com.au or via our website: www.commbankuk.co.uk

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Commonwealth Bank of Australia ABN 123 123 124 is incorporated with limited liability, registered in England No. BR250 and authorised and regulated in the UK by the Financial Services Authority. ASB Bank is a part of the Commonwealth Bank of Australia Group and incorporated in New Zealand with limited liability. Anglo Pacific International PLC and Commonwealth Bank of Australia are separate entities who have entered into a commission sharing agreement.