Posts Tagged ‘Australian banking industry’

Financial Management In Australia

April 23rd, 2011 27 Comments
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The Australian banking system works in much the same way as the banking system in other industrialized nations throughout the world. It is easy to get in touch with representatives of the bank, and in most cases the banks are used to working with immigrants who do not speak English.

Concerns You May Be Facing

If you are the type of person who spends a great deal of their time moving from one location to another across the globe, or if you are moving to the country, you have many different things that you need to keep track of. Not only do you need to physically relocate your possessions and find a place to live, you also need to deal with bureaucratic issues such as making sure that your visa is in working order.

In addition to all of these concerns, it is also important to make sure that your financial situation is properly taken care of. This covers everything from opening an Australian bank account to ensuring that all of your payments are made on time. Thankfully, the Australian banking industry can help simplify this process and alleviate some of the stress that you might be going through.

The Australian Banking Industry

The banking industry in Australia is one of the most reliable in the world. In fact, the World Economic Forum has rated the Australian banking system second place compared to any other banking system in the world. In addition to bank accounts, banks in Australia offer a wide range of wealth management services. Products that they offer include loans for personal, business, and mortgage purposes. Insurance, investments, credit cards, and financial planning services are also available.

Many of the banks in the country can help you set up your accounts, credit cards, and other financial products even before you move into the country, which makes the process a great deal simpler.

In addition to this, there are international banking teams that you can take advantage of, providing you with access to a staff that can speak a wide variety of languages.

Checking Account

The first place that you will want to start when you move to the country is a simple everyday checking account that you can use for day-to-day transactions like paychecks and grocery shopping. There are several things that you will need to think about before you choose to set up an account.

The first thing that you should look for is a bank that is part of a strong network. The availability of the bank should be widespread so that you will be able to access your account no matter where in Australia you are located. At the very least, you will want access to ATMs that will give you access to your account without needing to pay a fee. Australia is not a small country, so the importance of a national chain should not be understated.

It is also a good idea to deal with a bank that you have access to twenty four hours a day, at least online. Do your research and find out if their telephone and website systems are convenient, easy to use, and offer a wide variety of services. The more you can do with an online system, the more time you can save. This advantage is twofold, because a bank with good automated systems also has more time available for its customers who need to speak with a human being.

Never sign up for a bank account without understanding its fee structure. You might be charged for certain types of transactions, for not having enough money in the account, for over-drafting, or even simply for having an account with the bank. Take a close look at the way you use your bank account before you agree to any fee structure.

Savings Accounts

If you have additional funds that you want to protect from the effects of inflation, it is also a good idea to sign up for a savings account, a certificate of deposit, or a similar financial package. Banks earn money by lending out their customer’s funds in exchange for earned interest. If you open up a savings account, you can earn some of this interest yourself. Be sure to find out what the withdrawal limits and fees are before signing up.

Credit Cards

It is a good idea to have a credit card on hand in order to make emergency payments that you can’t otherwise afford, or to build up your credit rating. Banks in Australia offer the same major credit cards that are available in most countries throughout the world, including MasterCard, Visa, and American Express. They also provide new “contactless” cards, which make it possible for you to buy inexpensive items without needing to enter a PIN number or leave a signature.

Of course, if you are planning to make a larger purchase, it is usually a better idea to take out a loan instead. The interest rates are lower, meaning that the costs are also lower in the long run. If you have enough evidence that you will be able to pay off your loan, there are some banks that will approve you on the same day that you apply.

If you are a new migrant to Australia then you should seek the help of a professional mortgage broker before you take on the commitment of a loan. Borrowing money in a new country is an entirely new ball game, so you need to get advice to avoid making any mistakes.