What is a no-fee bank account?
A no-fee bank account is typically a transaction account that does not charge a monthly account-keeping fee. These accounts are designed for everyday banking, allowing you to deposit money, make purchases, pay bills and withdraw cash.
Some banks offer genuinely fee-free banking with no monthly charges attached, while others may waive the fee if you meet certain conditions, such as:
- Depositing a minimum amount each month
- Being under a certain age
- Receiving government benefits
- Studying full-time.
However, even if an account has no monthly fee, other charges may still apply depending on how you use the account.
How to compare no-fee bank accounts in Australia
The table below highlights some of the most common fees charged on across personal transaction accounts on Canstar’s database, along with how frequently they apply and the typical median cost. While many accounts don’t charge a monthly account keeping fee, other costs (particularly international transactions, ATM, and dishonour fees) may still apply depending on how you use the account.
Transaction account fees
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Fee | % of accounts that charge a fee | Median |
Monthly account keeping | 28% | $5 |
Monthly deposit to waive | – | $2,000 |
EFTPOS transaction | 17% | 70 cents |
International/currency conversion fees | ||
EFTPOS conversion | 80% | 3% |
Fixed international POS charge | 15% | $4.50 |
ATM currency conversion | 79% | 3.00% |
International ATM charge | 59% | $5 |
Direct debit | ||
Direct debit | 9% | 50 cents |
Dishonoured direct debit | 68% | $10 |
Cheque fees | ||
Cost of cheque book (25 cheques) | 16% | $14 |
Cheque withdrawal | 17% | $1.50 |
Cheque deposit | 9% | 85 cents |
Dishonoured cheque | 55% | $12 |
Other fees | ||
Unauthorised overdraft | 49% | $10 |
Branch cash withdrawal | 19% | $2 |
Phone transaction with operator assistance | 9% | $5 |
Failed ATM transaction own network | 11% | 80 cents |
Failed ATM withdrawal own network | 7% | $1.20 |
Source: www.canstar.com.au – 20/07/2023. Based on personal transaction accounts on Canstar’s database. Median based only on accounts that charge a fee.
How to choose a no-fee bank account
Not all fee-free transaction accounts offer the same features or value. Comparing more than just the monthly fee could help you find an account better suited to your banking habits and financial goals.
Before choosing an account, consider:
- How often you withdraw cash.
- Whether you travel or shop overseas.
- If you prefer app-based banking or branch access.
- Whether you’re likely to meet fee waiver conditions.
- What everyday banking features matter most to you.
Do you mainly bank online?
If you manage most of your finances digitally, you may want to prioritise:
- App functionality
- Instant payment features
- Digital wallet compatibility
- Budgeting and savings tools
- Customer support access
Many digital banking apps now include spending insights, instant notifications and card controls that can help make everyday banking easier to manage.
Do you travel overseas?
International fees can quickly add up when travelling or shopping online with overseas retailers. Some transaction accounts charge foreign transaction fees of around 2%–3% per purchase, which could add noticeable costs over time.
If you regularly spend overseas, it may be worth comparing:
- International transaction fees
- Overseas ATM withdrawal fees
- Exchange rates
- Multi-currency features
Do you regularly use cash?
ATM access may still be important if you frequently withdraw cash or deposit money in person.
Some providers offer:
- Large fee-free ATM networks
- ATM fee rebates
- Branch access
- Cash deposit facilities
Checking ATM availability and fees could help you avoid paying unnecessary transaction costs.
Are you a student or a concession card holder?
Some banks offer fee waivers or dedicated fee-free accounts for eligible students, pensioners and concession card holders.
These accounts may include:
- Waived monthly fees
- Lower minimum deposit requirements
- Everyday banking tools designed for simpler money management
What’s the best no-fee transaction account in Australia?
The best no-fee bank account for you will depend on how you bank day to day, from how often you use ATMs to whether you regularly travel overseas or prefer app-based banking. While no single account will suit everyone, Canstar’s awards and Star Ratings can be a useful starting point when comparing accounts based on value, features and fees.
Canstar 2026 Transaction Account Awards
Canstar’s 2026 Outstanding Value Transaction Account Awards recognises providers offering strong overall value based on a combination of fees, features and everyday banking functionality.
Several of the 2026 award winners currently offer transaction accounts with no monthly account-keeping fees or accounts that waive fees under certain conditions. These accounts may also include features like fee-free international spending, ATM fee rebates, cashback offers and mobile banking tools.
Award-winning providers in 2026 include:
- Bankwest
- Great Southern Bank
- HSBC Australia
- ING
- Macquarie Bank
- NAB
- Suncorp Bank
- Westpac
You can use Canstar’s comparison table to find the best bank account for you by comparing award-winning transaction accounts side by side based on fees, features and everyday banking needs.
What fees should you look out for?
Even if a transaction account doesn’t charge a monthly account-keeping fee, there may still be other costs to consider depending on how you use the account.
Monthly fees and fee waivers
Some accounts are completely fee-free, while others waive the monthly fee if you meet eligibility criteria. If an account requires a minimum monthly deposit to avoid fees, check whether that condition realistically suits your income and spending patterns.
International transaction fees
Some banks charge fees when you make purchases overseas or shop with international retailers online. If you travel regularly, comparing these fees could help reduce the cost of spending abroad.
ATM fees
While many banks no longer charge domestic ATM withdrawal fees, charges can still apply at certain ATM operators or international ATMs.
Some providers may offer:
- Fee-free ATM networks
- ATM fee reimbursements
- Unlimited withdrawals within Australia
Overdraft and dishonour fees
Overdraft or dishonour fees may apply if there isn’t enough money in your account to cover a transaction or direct debit. Staying on top of your balance and upcoming payments could help you avoid these costs.
Assisted transaction fees
Some banks may charge fees for over-the-counter or staff-assisted transactions. If you prefer in-branch banking, it could be worth checking whether these fees apply.
Pros and cons of no-fee bank accounts
Like any financial product, fee-free transaction accounts may have both advantages and limitations depending on your banking needs.
Pros
- May help reduce everyday banking costs
- Often include modern app features and digital banking tools
- Can simplify everyday spending and bill payments
- May offer fee-free international spending or ATM access
- Wide range of providers and account options available
Cons
- Other fees may still apply
- Some accounts have limited branch access
- Fee waivers may require eligibility criteria
- Promotional offers may be temporary
- Features and support levels can vary between banks
Switching to a fee-free bank account
Switching transaction accounts is easier than many people expect, particularly if you mainly bank online.
1. Compare accounts and features
Start by comparing transaction accounts based on:
- Monthly fees
- International transaction fees
- ATM access
- App functionality
- Customer support options
Choosing an account that suits your banking habits could help reduce fees and improve convenience.
2. Open your new account
Many banks allow customers to open a transaction account online. You’ll typically need identification documents such as a driver's licence or passport.
3. Update your banking arrangements
Once your new account is active, update:
- Salary payments
- Direct debits
- Recurring subscriptions
- Linked payment services
Keeping your old account open temporarily may help ensure payments continue processing correctly during the transition.
4. Transfer your balance and close your old account
Once all payments and transfers have been updated successfully, you can move any remaining funds and contact your bank to close the old account.
How to avoid bank fees
Pick the right account
Make sure your bank account suits you and your payment habits. For example, if you regularly travel or make overseas purchases online, you might want to pick an account that charges no or low international fees. Check your bank’s schedule of fees and other relevant terms and conditions so you understand what you could be charged for.
Do up a budget
Create a budget to help avoid dipping into your overdraft. This will help make sure you have enough money in your account to cover any upcoming payments. Setting reminders for when payments such as household bills are due can help avoid unnecessary fees.
Check if you can get a fee waiver
Ask your bank if you are eligible for any fee waivers. Some banks will waive monthly fees if you deposit a certain amount of money into your account each month, or if you are a full-time student or receive government benefits.
Shop around
Do your research and compare your options. While it’s important to focus on fees, it’s just as important to look at the features on offer to you. Consider what you want out of your transaction account; do you want budgeting and saving tools? Or would you like access to a large ATM network? Do you want to link a savings account?
Use Canstar’s comparison table to compare transaction accounts side by side based on fees, features and everyday banking functionality. You can filter and compare options to help narrow down accounts that suit your banking habits and priorities.
If you’re looking for standout value, you can also explore Canstar’s latest Star Ratings and award-winning bank accounts, selected by Canstar’s expert research team after assessing products across price and features.