- 53% of Australians bank with the same bank their parents set them up with
- Around a third still use the same account their mum and dad opened for them
- Switching bank accounts can literally make you money and it's not as difficult as it sounds
If you’re still with the same bank Mum and Dad set up for with as a kid, you’re in the same boat as more than half of all Australians.
A 2025 survey by the Customer Owned Banking Association found 53% of Australians chose their main bank because of their parents - with a third reporting they still used the accounts set up for them as a child.
If this is you, take a look at your current bank and ask yourself:
- how much am I earning in interest on my transaction account/savings account?
- how much interest am I missing out on because I'm not meeting bonus interest conditions (do I even know what they are?)
- what's the bank doing to keep me as a customer?
If it's a one-sided relationship where they're taking your loyalty for granted, get out now. It's not you - it's them.
Here’s how to break up with your bank in five simple steps:
1. Compare your current bank account with others
Before you commit to a new bank, be sure to compare your options.
Here are three key factors to look for in a savings account:
- Low - or preferably no - fees
- A high interest rate
- Achievable conditions to regularly receive the highest interest rate
The table below features some of the highest introductory savings account rates on the market and is a good place to start.
| Bank | Savings Account | Base Interest Rate | Max Interest Rate | Total Interest Earned | Introductory Term | Minimum Amount | Maximum Amount | Linked Account Required | Minimum Monthly Deposit | Minimum Opening Deposit | Account Keeping Fee | ATM Access | Joint Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
0.05% p.a. Bonus rate of 5.30% Rate varies on savings amount. | 5.35% p.a. | $541 | – | $0 | $249,999 | $0 | $0 | $0 |
| Promoted | Disclosure | ||||||||
2.25% p.a. Bonus rate of 3.15% Rate varies on savings amount. | 6.00% p.a. Intro rate for 4 months then 5.40% p.a. | $583 | 4 months | $0 | $499,999 | $0 | $0 | $0 | Promoted | Disclosure | |||||||||
4.00% p.a. | 5.90% p.a. Intro rate for 4 months then 4.00% p.a. | $530 | 4 months | $0 | $249,999 | $0 | $1 | $0 | Disclosure | ||||||||||
1.25% p.a. Bonus rate of 0.45% Rate varies on savings amount. | 5.25% p.a. Intro rate for 5 months then 1.70% p.a. | $470 | 5 months | $0 | $99,999,999 | $0 | $0 | $0 | |||||||||||
0.01% p.a. Bonus rate of 4.99% Rate varies on savings amount. | 5.00% p.a. | $505 | – | $0 | $99,999,999 | $1 | $0 | $0 | |||||||||||
1.25% p.a. | 4.90% p.a. Intro rate for 3 months then 1.25% p.a. | $309 | 3 months | $0 | $99,999,999 | $0 | $1 | $0 | |||||||||||
2.10% p.a. | 4.80% p.a. Intro rate for 4 months then 2.10% p.a. | $392 | 4 months | $250,000 | $99,999,999 | $0 | $$formattedMinOpeningDep.format("%,d",$!{product.minimumOpeningDeposit}) | $0 | |||||||||||
0.25% p.a. | 4.75% p.a. | $25 | – | $0 | $99,999,999 | $0 | $0 | $0 | |||||||||||
0.10% p.a. Bonus rate of 4.65% Rate varies on savings amount. | 4.75% p.a. | $480 | – | $50,000 | $249,999 | $10 | $0 | $0 | |||||||||||
0.10% p.a. Bonus rate of 4.50% Rate varies on savings amount. | 4.60% p.a. | $464 | – | $0 | $99,999,999 | $100 | $0 | $5 |
There are also some other key things to consider, including:
- The ongoing rate after the introductory period ends
- Access to branches or ATMs (if you want physical access)
- If there are any ATM withdrawal fees or foreign transaction fees
- Online functionality and app quality
- Customer service
- The ability to link your accounts with other products
Savings.com.au’s two cents
The big four banks hold just under three-quarters of all household deposits in Australia, including billions of dollars in non-interest bearing accounts.
Some of these funds sit in legacy accounts where account-holders haven't been proactive in researching what else the market can offer them - or failing to formally close down old and inactive accounts (more on this below).
In a bid to wrest rusted-on deposits away from the the big banks, smaller challenger banks and credit unions can offer some highly competitive alternatives.
If you haven't looked at what's available in the way of transaction/ savings accounts lately, you may be pleasantly surprised how competitive some products are - and how much better you may be do with a new bank.
Just be sure to match the product to your own individual needs and likely usage. Don't be dazzled by eye-catching introductory or bonus rates.
Think long term and consider how dedicated you're going to be in ensuring you meet any bonus interest conditions. If that doesn't sound like your gig, you may be better off going for a no-strings attached ongoing rate that you'll be guaranteed every month without you having to do anything at all.
2. Open your new account
If you think you’ve found 'the one', it’s time to open your transaction and/or savings account.
You can do this in as little as ten minutes by visiting the bank’s website and clicking the relevant links.
It may vary from bank to bank but, generally, all you need is to provide some basic information about yourself as well as an approved form of ID and your tax file number.
Perhaps some banks may need to go to a local branch to confirm your identity, but it's not typically the case.
Once you’ve signed up online, you should receive a debit card for your transaction account within the next few business days. You’ll have to activate the card before you can use it, which can be done over the phone, online, or through the app depending on the options provided by the institution. Also, don’t forget to sign the back of the card.
Some bank accounts may require you to deposit a sum of money into each account before it becomes active. Make sure you do this before moving onto the next step.
3. Make a list of all your direct debits and direct credits
Most people can't face the hassle of changing banks because of their pre-existing direct debit and credit arrangements.
It’s undoubtedly an obstacle that keeps many people stuck in a bad banking relationship, but what most people don’t know is that banks have been required to help facilitate the handover of direct debit and credit setups since 2012 under guidelines brought in by the Australian Securities and Investments Commission (ASIC).
It’s also safe to say that banks aren’t exactly a big fan of helping customers switch to another bank, even if they are required to do so.
If you ask your new bank to help you make the switch, they can contact your old bank on your behalf and get a complete list of your direct debits and direct credits from the past 13 months.
Direct debits may include:
- regular membership fees (e.g. gym)
- phone plan
- health insurance
- streaming services
- utilities and rates
- mortgage/rental payments
- childcare
Direct credits may include:
- salary
- welfare/pension payments
- investment dividends
- rental income
- child support
What won't show up on your list
- BPAY payments
- ‘Pay anyone’ payments (where you make a payment from your account into someone else’s account)
You will need to set these up yourself.
This is an important step in the process. If your usual direct debits try to draw from your old bank account and there's nothing in it, you could be charged a dishonour fee by both the creditor and your financial institution.
4. Transfer these over to your new account
Once you’ve got a list of all your direct debits and credits, you need to transfer them to your new bank account.
There are two ways to do this:
- You can do it manually yourself
- Or you can just ask your new bank to do all the hard work for you
No points for guessing which one is the easiest option, especially if you have a long list of direct debits and credits.
For this to happen, you’ll have to fill out a form with all the business contact details for the payments you want to update.
This isn’t 100% foolproof though so it’s always a good idea to double check on your most important direct debit and credit arrangements, like utility providers and your mortgage/rental payments.
Remember you'll still need to manually transfer some payments yourself, like BPAY and ‘pay anyone’ payments.
And don’t forget to let your employer know about your new bank account so your salary can be deposited in the right place.
5. Transfer any remaining funds and close your old account
Now that you’ve transferred all your direct debits and credits, it’s time to formally break up with your old bank account.
But before you make the cut, it’s wise to leave some funds in there for a few months to ensure all your direct debits and credits have actually been transferred. (There's no accounting for the efficiency of other business's accounting systems after all.) Plus, you don't want to get slugged with dishonour fees if there's a delay.
Once you’re certain all your direct debits and credits have been transferred to your new account, transfer any remaining funds to your new bank account.
Closing your old bank account
It's important to close down your old bank account even if you don’t have any money left in it. This is because some banks charge inactivity fees for not using your account, while others might continue to charge monthly fees on your empty account.
Some banks will allow you do this online; others will require you to head into a branch to close down your account. Some ask that you request for the account closure in writing, along with your signature to verify the process. If you’re not sure which option your bank requires, the easiest way to find out is to get on the phone and ask them.
But don’t make the rookie error of assuming that just because you’ve spoken to someone over the phone that your account has actually closed. Banks really don’t want to lose your business, so be prepared for them to make you work that little bit harder to close down your account.