10 Best Digital Banks in Australia for Online Banking in 2024
Best Digital Bank in Australia in 2024 - Wise
TOP Digital Banks in Australia in 2023:
| Regulation in Australia | Loan rate | |
|---|---|---|
Yes (ASIC) |
Individually (up to 6.40% on the mortgage) |
|
Yes (ASIC) |
From 7.3% |
|
No |
Individually (from 3.75%) |
|
No |
Individually (depends on the client’s credit score, among other things) |
|
ANZ |
Yes (ASIC) |
From 16.27% |
For many Australians, digital banks have become the new standard in finance - offering convenience, competitive rates and innovative services without the hassles of physical branches. But with dozens of options to choose from, deciding who to trust with your money can feel overwhelming.
That's where this guide comes in. We've done the heavy lifting by assessing, comparing and ranking 10 of the top digital banks currently operating in Australia. From nimble startups to household names, these financial disruptors have raised the bar for customer experience, accessibility and value.
Inside you'll find detailed reviews of brands like Wise, Revolut, CIT Bank and more. We break down their features, fees, account options and more to help you identify the right fit. You'll also get insight into which banks excel for savings, investing abroad and everyday convenience.
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Are digital banks safe to use?
Reputable digital banks that are regulated in Australia or overseas are generally safe to use. Customer funds are protected by deposit insurance and the banks use security measures like encryption and multi-factor authentication.
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Can I withdraw cash from a digital bank?
While digital banks don't have their own ATMs, many partner with ATM networks so customers can withdraw cash for a small fee. Banks may also reimburse a certain number of fees per month.
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How do I deposit cash into my digital bank account?
Some banks allow deposits at partner ATMs, while others require depositing funds electronically from an external linked account.
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What is the process for applying for a loan with a digital bank?
The application process is typically completed fully online by submitting basic personal and financial details. Most digital loans are approved and funded within days if not hours, subject to underwriting criteria.
What is a digital bank in Australia?
In Australia, “internet banks” is a term that means the same as it does in other countries. It refers to credit and financial institutions that offer banking services online via their official website and mobile application. Since neobanks do not have physical offices, clients do not need to go there to open an account, get a loan, or make a transfer. There is no need to prepare a set of documents for a particular operation, stand in lines, or communicate with managers. Every operation is done with a few taps on the smartphone screen. This provides conceptual advantages to online banks in Australia over traditional banks.
Online banks have an unprecedented level of automation of the main processes, which allows the human factor to be almost eliminated while also speeding up the bank’s operations. Most companies take one to two days to process international transfers; however, a client can get a mortgage or a consumer loan instantly because the bank already knows his credit rating and main details. The only thing clients will have to wait for is the KYC verification. In companies where it is applied, such verification can take several days.
The number of clients of Australian online banks is constantly growing. This is a global trend; in nearly all developed countries, two-thirds or more of the population uses online bank services.
Services provided by digital banks in Australia include:
opening a current, savings, or investment account;
getting a loan for a car, study, the purchase of residential property, or other purposes;
performing currency conversion and international transfers;
obtaining a report on all transactions for any period;
investing in a portfolio of securities or a fund.
Advantages of virtual banks in Australia:
Favorable service. Most neobanks do not charge a subscription fee. They earn on transaction fees (for example, fees for international transfers). Even if the bank only offers paid plans, its services will be less expensive than those of a traditional bank.
Service aggregation. To get the necessary service from a digital bank in Australia, clients only need a smartphone with an installed application and internet access. They can get a loan, open an investment account, or pay off an overdraft with just a few taps on the screen.
Worldwide availability. Almost all virtual banks in Australia allow clients to use online payments and a physical bank card in any developed country. There are no regional restrictions on paying for goods in the store or withdrawing funds from ATMs (although clients should be aware of additional fees abroad).
All accounts are in one place. The dashboard of the website and mobile application provides detailed reporting on financial transactions. Most applications automatically estimate income and expenses by category and provide reports for any period. Some may aggregate data from different accounts.
Opportunities for passive earnings. The Traders Union’s list of digital banks in Australia includes companies that allow their clients to invest in securities, funds, commodities, and cryptocurrencies. This process is automated, and the user is only required to set the investment parameters. Banks also offer savings accounts.
Modern internet banking. The best online banks in Australia provide services that meet the advanced standards of the internet banking sector. The bank’s clients can receive many services to ensure their financial stability and wealth such as sub-accounts, overdrafts, and investing in cryptocurrencies.
Technical support. All neobanks have multi-channel call centers, and clients can also reach technical support by email. However, the preferred method of communication is live chat because it allows clients to resolve banking problems in a matter of minutes without the need for face-to-face communication, which takes extra time.
Data protection. Virtual banks in Australia offer several levels of security, including protection with code, biometrics, and push notifications. These applications have never been hacked because they apply advanced encryption methods. Client funds have a high level of protection, so there is no need to be concerned.
Disadvantages of online banks in Australia:
The main drawback is that neobanks do not have their own ATMs (the exception is ANZ online bank). Therefore, they have to enter agreements with traditional banks and specialized networks. Then, withdrawals from these ATMs will be free or with a low fee, whereas withdrawals from other ATMs will always be paid, and the fee is frequently quite high.
Another aspect of the lack of bank-owned ATMs is the difficulty of depositing cash into a client’s account. This deposit method is not always available via ATM. Some of the companies on the list of online banks in Australia do not allow clients to deposit funds into their accounts via postal orders or by scanning a check. In this case, the client can deposit funds into the account only by online transfer.
The third drawback is quite subjective, but it is highlighted by many clients. The issue is that some people value and prioritize face-to-face, live communication. To save time, neobank does not provide such a method of communication. The maximum degree of social interaction is a conversation with the manager on the phone.
List of digital banks in Australia with the best service terms
Currently, there are several dozen online banks in Australia. As the Traders Union experts have previously stated, the majority of them are international giants like Wise and Revolut. Nevertheless, there are local companies that adhere to the highest standards such as Up and Hay. Many of these organizations have been in business for more than ten years, are proven and dependable, and offer a full range of online banking services.
Users can visit the websites of each of the neobanks, analyze their terms, and compare them. It will take weeks, but the results will be objective. Another way is to read TU’s review of online banks in Australia, which includes only the top companies. It is prepared by TU financial experts and is regularly updated.
| Regulation in Australia | Australian dollar support | Loan rate | Service fee | ||
|---|---|---|---|---|---|
Wise |
Yes (ASIC) |
Yes |
Individually (up to 6.40% on the mortgage) |
No fee |
|
Revolut |
Yes (ASIC) |
Yes |
From 7.3% |
0-13.99 euros per month, depending on the plan |
|
Bunq |
No |
Yes |
Individually (from 3.75%) |
0-17.99 euros per month, depending on the plan |
|
CIT Bank |
No |
Yes |
Individually (depends on the client’s credit score, among other things) |
No fee |
|
ANZ |
Yes (ASIC) |
Yes |
From 16.27% |
$5 (no fee if the deposit is over $2,500 per month) |
|
Monzo Bank |
No |
No |
8.9% or 23.9% depending on the amount of the loan |
0-15 euros per month, depending on the plan |
|
Capital One |
Yes (APRA) |
Yes |
Individually (depends on the client’s credit score, among other things) |
From $5 (no fee if balance is over $2,000) |
|
N26 |
No |
Yes |
1.99% per annum |
0-16,90 euros per month |
|
Up |
Yes |
Yes |
11.23% per annum |
No fee |
|
Hay |
Yes |
Yes |
Individually |
No fee |
Many Australian digital banks do not charge a subscription fee. If the “Service fee” field contains a range of fee amounts, it means that the neobank offers several plans. In general, if the first digit in this field is "0," this indicates that the bank provides, among other things, a free plan (usually with limited functions).
As for loan rates, while the information in this table is regularly updated, banks can change their terms much more frequently. For this reason, the information provided should be regarded as suggestive.
In Australia, internet banks may be regulated by the Australian Securities and Investments Commission (ASIC) or the Australian Prudential Regulation Authority (APRA). However, just because a neobank is not supervised by a local regulator does not mean it cannot be trusted. Many virtual banks are regulated internationally by organizations such as the Financial Services Authority Seychelles (FSA) and the Cyprus Securities and Exchange Commission (CySEC). In this case, the fact that the bank is regulated is more important than the regulating authority itself.
Wise
Wise is considered the best digital bank in Australia and many other regions, including the U.S., Europe, and India. The bank provides a full range of online banking services at low fees. Fees for international transfers are especially advantageous. Because the bank provides a conversion function, the bank’s client can hold funds on the account in multiple currencies. When opening an account, the client is provided with a virtual bank card, with the option of ordering a physical one. The bank offers several free ATM withdrawals per month, after which a universal fee of 1.75% is applied.
👍 Pros
•several types of accounts with many options to choose from;
•a client can hold funds in 56 currencies;
•Wise cooperates with 80 banks worldwide;
•no fees for transfers in the base currency.
👎 Cons:
•no credit instruments;
•no savings accounts.
Revolut
Revolut was on the list of online banks in Australia with the best terms because it has low fees and is regulated by international authorities. The bank offers several account types for personal and business use. Revolut provides the fastest transfers between accounts within the country and abroad. The list of services contains all the possibilities of modern internet banking, including credit instruments (mortgages, consumer loans, etc.). Also, clients can choose from several plans, including a free one. Revolut’s technical support is also considered one of the best.
👍 Pros
•money transfers to any country;
•integrated conversion function;
•holding funds in different currencies;
•no extra withdrawal fees.
👎 Cons:
•high fees for exotic currencies;
•many limitations on the free plan.
CIT Bank
CIT Bank is one of the largest digital banks, which operates not only in Australia but also in most other countries. CIT (collective investment trust) Bank provides accounts for individuals as well as solutions for businesses. This bank has one of the highest rates on savings accounts at 4.25%. No local bank offers such a rate. But it is relevant only if the deposit is $1,000 or more. Otherwise, the rate will be 3.25%, which is also a high figure.
CIT made it to the list of the best online banks in Australia, among other things, thanks to its loan options. It offers loans for the purchase of residential property, a car, or to pay for tuition. Plus, there are ordinary consumer loans. Each program has its terms, tailored to a specific task. Otherwise, it is a standard neobank without a physical branch, but with a convenient mobile application and automation of most functions. Users especially note the convenience of the dashboard.
👍 Pros
•no subscription fee (only commissions);
•refund on ATM withdrawal fees;
•one of the highest interest rates on savings.
👎 Cons:
•no option to withdraw funds from ATMs without paying a fee;
•technical support is only available during specific hours.
Bunq
Bunq, one of Australia’s oldest companies, is listed among the best digital banks. It was founded in 2012 and quickly expanded to the Australian region. At the moment, its activities are completely transparent, with no evidence of non-fulfillment of obligations to clients. Plus, this neobank is supervised by an international regulatory body.
Bunq implements many unique programs, including those aimed at helping the environment. The company will plant a tree as soon as a client spends 100 euros from his account (or the equivalent in Australian dollars). This is just one of many examples, as this bank has many other initiatives.
In Australia, only a few online banks allow clients to open a sub-account. This is an additional account that is equal to but separate from the standard one. For example, the client can use this sub-account to hold funds in another currency and use them if necessary without conversion. Sub-accounts give Bunq clients more financial opportunities.
👍 Pros
•different account types for individuals and businesses;
•many functions are customizable;
•fast and stable mobile application;
•responsive technical support.
👎 Cons:
•serious limits on most transactions;
•extra fees that other neobanks do not charge.
ANZ
This neobank is a subsidiary of the financial group of the same name, which is a member of the so-called “Big Four” (the four largest banks in Australia). It offers personal and business accounts, while fees are average for the region.
This Australian digital bank is widely known for its loan solutions. It provides loans regardless of the client’s credit score; the average approval time is 5 minutes. The unique parameters of mortgage refinancing allow clients to improve their terms and receive up to $4,000 in cash back.
In addition to standard internet banking services, ANZ has several proprietary solutions. For example, the Financial Wellbeing program which automatically aggregates and analyzes information on all income and expenses, allowing clients to reduce unnecessary spending. The Content Navigator program makes it possible to quickly find the required service and get optimal terms.
👍 Pros
•several account types;
•many loan instruments;
•ATM network with the possibility of free withdrawals;
•favorable mortgage refinancing;
•practical options.
👎 Cons:
•investment opportunities are only represented by stocks;
•issues with the quality of technical support.
Monzo Bank
According to this list, Monzo has some of the lowest fees among Australia’s online banks. This is an international bank that is based in the UK and regulated by the Prudential Regulation Authority (PRA), which provides its clients with the highest guarantees. The bank offers several types of accounts, as well as basic deposit options, including via ATMs. Also, it provides international transfers to almost any country.
👍 Pros
•loyal verification terms at registration; no need to specify a residence address;
•the bank does not check the client’s credit score, and applications are approved within a minimum period;
•Monzo Bank has no hidden or extra fees; its operation is 100% transparent;
•the bank’s mobile application is compatible with all smartphone models and OS.
👎 Cons:
•there are difficulties with opening an account for people who do not reside in the UK or EEA countries;
•the client can install the bank’s application on only one mobile device.
Capital One
According to many experts, Capital One is the best online bank in Australia as per savings account terms. It does not block client deposits and provides high interest on them. Credit instruments have a high degree of flexibility; the terms are set individually for each specific purpose. At the same time, any client who is issued a loan receives an automatic credit score upgrade. There are also unique options for business accounts, such as the automation of standard reporting, including reports for tax authorities. Capital One offers loyal fees, fast provision of services, and high-quality technical support.
👍 Pros
•no paid plans;
•overdraft without fee;
•individual loans;
•profitable interest on savings;
•technical support can be reached seven days a week.
👎 Cons:
•withdrawals with a high percentage at some networks’ ATMs;
•technical support responds quickly, but there are doubts about its competence.
N26
This German digital bank has been represented in Australia for a long time. N26 has clients from all regions because it offers a full range of online banking services at reasonable prices (there is a free plan). The deposit rate is fairly high (1.99%), client data is protected by 3D Secure, and clients can also apply for insurance of 100,000 euros. Users note the convenience and high speed of the mobile application. In general, N26 is an advanced neobank that makes it easy to optimize financial management.
👍 Pros
•easy opening of an account within a few minutes;
•a virtual MasterCard card is issued with the account.
•many tools for multiplying funds.
👎 Cons:
•no credit cards, only debit cards;
•only one user account per client.
Up
This bank is also known as Up Money and Up Banking. It offers all conventional internet banking services, including savings accounts, goals, and sub-accounts. It is especially convenient to use this digital bank in Australia if most of the client’s friends and colleagues also have an Up Banking user account. This is because all internal transfers are free, and funds can be transferred directly through the application chat. The bank provides standard, savings, and joint accounts. The Round Ups function allows the client to round up the amount of each purchase to a whole dollar, transferring the cents saved in this way to a separate designated account (a savings account, for example).
👍 Pros
•one of the most convenient and functional mobile applications;
•most transactions within the country are free;
•there are many special options for budget management.
👎 Cons:
•no full-fledged credit instruments;
•some options seem excessive.
Hay
It is included on all lists of the best online banks in Australia because it does not charge a subscription fee and offers high-quality services. The bank offers five-minute account opening, favorable exchange rates, and zero foreign transaction fees. The physical bank card is sent for free within 5 business days. Additionally, there is a low fee for international transfers, and all purchases under $10 earn 1% cash back. The main advantage of this neobank is that withdrawals from almost all ATMs in Australia are free (up to $500 per month). Users appreciate the mobile application’s visual clarity and the absence of unnecessary options.
👍 Pros
•standard and a travel account are available;
•no currency conversion fee;
•no withdrawal fee at ATMs in Australia (though there is an amount limit);
•low fee for international transactions.
👎 Cons:
•after $500 a month, the withdrawal fee at ATMs in Australia is 1.5%;
•neobank provides only standard accounts; there are no accounts for savings or credit cards.
Best digital banks in Australia with low fees
Some of the companies in our ranking of digital banks in Australia provide similar, if not identical, functions, while others are very unique. Not every bank, for example, offers savings, lending, and investment services. The differences may be minor or conceptual. However, for many users, fees are the most important factor. This is fair because, with high fees, the rest of the benefits do not seem so favorable. For example, a neobank has a high-interest rate on savings, but also a high percentage on transfers. Thus, if the client transfers funds frequently, the fee charged will offset the benefits of the low rate. That is why the Traders Union experts have listed the best online banks in Australia and their main fees in the table below.
| Overdraft fee | ATM withdrawal fee | International transfer fee | International exchange fee | |
|---|---|---|---|---|
Wise |
No fee |
1.75% (additional terms applied) |
0.3-3.5% |
From 0.3% |
Revolut |
No fee |
Not charged up to six withdrawals, then 1.5 pounds |
From 0.5% |
From 2.5% |
Bunq |
No fee |
Not charged up to 250 euros per month, then 3% |
No fee |
3% |
ANZ |
No fee (12.90% + 6% for excess) |
Not charged in ANZ ATMs, $1.25 in other ATMs |
$0-32 depending on the transfer terms |
1% |
CIT Bank |
No fee |
Not charged in partner ATMs; 1% in other ATMs |
No fee or $35 per transfer (depending on the account type) |
Individually |
Monzo Bank |
No fee |
Not charged up to 200 pounds per month, then 0.5 pounds |
No fee |
Individually |
Capital One |
No fee |
2% (+$3 abroad) |
Service is not provided |
No |
N26 |
8.9% higher than the current European Central Bank (ECB) rate |
On average, 2 euros + 1.7%, which depends on the plan and the number of withdrawals |
No fee in the European Economic Area |
At the average market rate with a fee of 1-2% |
Up |
Service is not provided |
Not charged in most ATMs in Australia and other countries |
No fee |
Individually |
Hay |
Service is not provided |
Not charged up to 500 dollars in Australia, then 1.5% |
No fee |
No |
Best online banks in Australia with savings accounts
Wise
A review of online banks in Australia shows that Wise offers savings accounts with favorable terms. In comparison with its competitors, it has the most accounts of this type (seven), and the rate is much higher than the average (up to 2.75%), although not the highest. All savings accounts can be configured individually, and funds in these accounts are not blocked (that is, they can be withdrawn at any time, although in this case the percentage will be recalculated downward). Savings account fees are no more than 0.55%, which is lower than most other neobanks. Since Wise is regulated by the Financial Conduct Authority (FCA) and operates under the Financial Services Compensation Scheme (FSCS), all client deposits are insured.
CIT Bank
The Traders Union experts previously mentioned the highest savings rate when reviewing this company in detail. The standard rate is 3.25%, but if the deposit is $1,000 or more, the rate automatically increases to 4.25%. Just like Wise, CIT Bank does not block users’ deposits, and they are free to withdraw funds at any time. Of course, this should be done only in special circumstances since, with premature withdrawal, the percentage decreases. Another important point is that the bank is regulated, which ensures, among other benefits, that the depositors’ funds are insured.
How to Send Money Internationally?Best virtual banks in Australia for investing
Revolut
When opening an online account in Australia, many users want to get the best opportunities to increase their capital not only with savings accounts. In this regard, Revolut is one of the optimal solutions because it provides a wide range of tools: clients can invest in securities, commodities, and cryptocurrencies. The number of available tools is constantly growing. Be sure to consider the automated investment options. For example, a bank client can set the required price for an asset. As soon as the quotes reach the specified value, the client will receive an alert on the phone. All investment management is carried out through a mobile application.
Wise
Wise offers the highest investment rate among Australian digital banks. This bank has a universal Assets program that allows for the purchase of large company stocks (including dividend stocks). Clients can build an individual investment portfolio or use ready-made solutions provided by the bank’s experts. The profitability of ready-made portfolios at the end of 2023 is up to 13% per annum. Also, note that the funds in the Wise account can be stored in 50 currencies and freely converted at the market rate.
Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
Olga’s motto: Do well and you’ll be well!
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.