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Important Notice

This booklet gives information of a general nature and is not intended to be relied on by readers as advice in any particular matter.

You should consider consulting a financial adviser regarding how this information may apply to your own circumstances.

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HOW DO I OPEN A BANK ACCOUNT?

A young woman completing an application form to open a bank account.

Once you’ve made your choice, it’s time to open your bank account.

Opening a bank account is easy as long as you know what to expect – just be ready to complete the required steps and be prepared to provide the necessary information.

You can open a bank account by going to a branch of the bank. Opening a bank account at a bank branch means you need to go during business hours. Or it may be possible to apply for your account via the Internet or over the telephone. Opening a bank account via the Internet means that you can do it at any hour of the day.

ID PLEASE!

When you open a bank account for the first time, or with a new bank, you must provide the bank with some information. Banks don’t open bank accounts without certain information which proves you’re who you say you are.

The customer identification check is important to protect you against someone fraudulently using your identity and for the bank to make sure they comply with their regulatory obligations and protect it against risks.

You’ll need to provide simple details like your name and birthday and produce identification documents. Some examples of identification documents include your driver’s licence, birth certificate, passport or Medicare card.

You’ll also need to provide your tax file number (TFN) so that you can be identified for tax purposes. While this isn’t essential, it’s in your interests to do so. If you don’t provide your TFN, tax will be withheld from any interest paid to your account, and at the highest marginal tax rate.

In some cases, your bank may ask for additional information. For example, if you’re opening a student account, or an account that offers benefits to pensioners, you’ll be required to produce proof of your eligibility.

If you open an account online, you’ll have to enter information into a data box. You’ll also probably have to print, sign and mail a document to the bank before the account is opened and activated. Some banks complete the application electronically. Some banks will not make the account active until they have received the signed hard copy document.

If you open an account in a bank branch, the bank will probably take photocopies of your identification documents and retain these with a copy of your application.

Did you know?

From December 2006, Australia introduced new anti-money laundering and counter terrorism financing (AML/CTF) legislation containing measures in line with international standards on combating money laundering and terrorist financing. The fundamental requirement of the AML/CTF laws is that certain businesses, including banks, know their customer. A bank must identify its customers before providing a service, and must report certain transactions and suspicious matters to the Federal Government.

TERMS AND CONDITIONS

Before a bank can open your account, you’ll have to agree to abide by certain terms and conditions and accept responsibility for certain actions.

When you open a bank account you enter into a contract with the bank. You should, therefore, know what you’re getting into.

If you open a bank account online, you’ll usually have to complete this step by reading the terms and conditions and clicking an “I Agree” (or similar) button.

If you open a bank account in a bank branch, the bank will require you to sign the application form.

TIP

Read and understand the fine print

Never open a bank account without first reading the product information and understanding the terms and conditions and the various fees that might apply. Terms and conditions outline the rules and regulations that apply to how you use the account. If you don’t understand them, ask your bank to explain them to you.

OPENING A BANK ACCOUNT

There are four steps to opening a bank account:

Step 1: Read the product information. Before you open a bank account you should read the product information, including terms and conditions, product features, and fees and charges.

Step 2: Complete an application form. Whether you open an account online or over the telephone or in a bank branch, you’ll need to complete an application form. To complete the application form, you’ll need to provide certain details about yourself as well as provide identification documents. Completing an application form usually doesn’t take very long, sometimes only around 10 minutes. Some banks can verify your identification documents without you needing to go into a bank branch. Other banks will need you to present your identification documents before the account can be activated.

Step 3: Have your application processed. Once your application form has been received, the bank can start to process your application and open the account for you. Depending on the type of account you want to open, it can take around 5-10 business days for all your information to be received, checked and verified by the bank. If you’re an existing customer of the bank, an account can usually be opened more quickly.

Step 4: Start banking. Once your application has been accepted, the bank will activate your account and advise you of the account details so that you can transfer your money into the new account. Now you can start banking.

Once your account is active, you can then apply and register for telephone and Internet banking.

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