The 7 Best Digital Banks In Australia. Earlier, when the time was of the 60s, 70s, and 90s, people had the thought in mind that they had to visit their bank branches to completion of their work. The reason for this thought was mainly because of the lack of options available, unlike today. By the time internet was introduced in 1990, things have taken a boom, especially for making everything online available. And, the intention behind this purpose is clear: making lives as much easy as possible by reducing time, and effort, and providing comforts in the work.
Digital banks are one of the emergences of that time. It is an online system of banking where users or the account holder do not visit its branch for the work to be done. However, the work is completed from anywhere unless you have internet and the application or the website access of your online bank.
In this particular section, we would be talking about The 7 Best Digital Banks In Australia. Australia, like other nations of the world, is an advanced country with lots of benefits along with digital banks. As said, due to the internet access and the availability of banks, there are various digital banks available; but we, here, would be focusing only on the top 7 selected digital banks to help you with the information.
The 7 Best Digital Banks In Australia
Digital banks, Virtual banks, challenger banks, and online-only banks are all names of digital banks. These are different names to be called out for this newly online bank concept.
It’s good to shift from a traditional bank to a digital bank; meanwhile, it’s important to find out the best digital banks for your purpose, of course. In order to know about banks’ performance, it is recommended to visit review sites, which have actual data on the performance made by a particular bank.
For instance: TrustPilot, Product Review, and also Gomobilebanks for a better understanding of the financial product.
Also, the benefits of digital banks include 24/7 services, minimum to no fee charge for services, ATM access to all the country (without fee), and so on. Also, it is fast-changing in nature, meaning the digital banks’ facilities will be changed if there is need arose.
After an enlarged basic information doze of digital banks, now it’s time to discuss the best digital banks which will help you to choose quickly.
Best digital bank overall
Up
Up is one such name of a digital bank that lets its users experience what can be experienced from a digital bank. Being a digital bank helps in getting your salary into it and you can adjust the amount for the purpose of saving and spending. Along with it, other primary functions like transfer of funds within a minute, account opening, etc. are there.
One thing: Up does not provide mortgage and loan features, which can be used by other digital banks, no issue.
You can get 0.70% p.a. up to $1m. Also, users get their Up account to be used with Wise, a larger money exchanger platform with having capacity of converting your money into 48 different currencies.
Best digital bank for savings accounts
86 400
Particularly targeting the savings account, 86 400 has reduced its interest rates, but you can get an interesting offer of 1.20% p.a. but you will get this interest rate when you deposit at least $200+ per month. The total comprises of the base rate is 0.10% p.a., while the bonus rate is 1.10% p.a. for up to 50,000 balance.
There might be scenarios where you will find increasing or decreasing the interest rate. This change is very much common to take place due to the surging of new banks into the market.
It is ideal for those novice users who have never ever used digital banks and now want to do it from the very start. Let us now find out more regarding the same.
Best digital bank for business accounts
Airwallex
If you are looking best digital bank for your business to help it grow in Australia, you should go with Airwallex.
This digital bank is free from excessive fee charges and provides what suits your, being a business person. A few additional perks are: Free ATM usage within and outside of Australia, suits API to accept online payments.
So, if you are up to opening a business or you have already indulged in one, make sure you give a try to this amazing digital bank to ease financial management.
Best digital bank for cashback rewards
Hay
Cashback offers are now common to get on almost every digital bank, Hay is no exception with the same. The cashback offer can be taken through its debit card. By making use of the debit card, you can get 1% cashback, and also in special offerings, this might go up to 5%.
There is nothing like competition here, which makes this online bank users’ choice. You can try it for your benefit if you don’t want to rush up situations.
Best digital bank for metal cards
Revolut
Revolut is one such bank which is massively widespread in almost every nation of the world,, as we have seen in the USA and the UK that how this bank is active.
If the card designs fascinate you, you should go with Revolut because of its 5 different color varieties of metal cards. It looks premium and provides a vast variety of features as well.
In addition to that, you get 5 junior accounts as well. Other benefits include ticket protection, metal card payments, cashback, return protection, and a 0.65% AER interest rate on savings.
The other benefits include: you can spend in 150 currencies at the interbank exchange rate, where 28+ are free from any kinds of monthly fees. However, you are required to pay ATM withdrawal fee of up to A$1400 per month.
Best digital bank for freelancers
Wise
Wise is particularly used for money transfers across the world. This allows users to send and receive payments from far locations in a short span. Also, the facilities are provided on the linked bank accounts from PayPal and others for “free.”
Also, the transfer of money takes place in the Wise’s account. Further, it would be transferred to other accounts in the local currency (whichever nation you belong to).
Being the biggest money transfer among the world’s nations, users are benefitted a lot from it as they don’t have to pay for receiving and sending the amount between Wises’ accounts.
Judo Bank
Judo bank is particularly focusing the small-sized businesses, because of its small management of dealing with things. Apart from this, those businesses included which are neglected by the big digital bank services, dealing to cater to the need of big businesses.
This digital bank also takes the help of relationship bankers to help small and medium businesses.
It was particularly launched in 2016, particularly focusing on business accounts only. This is something that needs to be put on focus before making it your business partner.
Benefits of digital banking
Before talking about the benefits of virtual banks, a quick-to-understand intro to it is worth discussing: Digital banking or virtual banking, or mobile banking is all different names of a single concept. The online-banking system is such that it gets all the financial work completed without you going to a physical branch. Also, the services are in abundance that you will forget your traditional way of managing things when it comes to financing.
To provide these services, a vast variety of banks are available with different specializations of their products. You need to choose from them, as per the requirements. Also, take care of the fee charges and the interest rates of the particular bank.
Now, to give you an idea of what a digital bank can do for you, a list of benefits is given below, take a look.
Convenient
Using digital banks is easy as compared to traditional banks in many terms: Easy to set up an account, easy to access your account using the bank’s application, no-fee account set up, and many more.
And the best thing about virtual banks is; that you don’t require visiting bank branches to get your work completed.
Higher interest rates
Usually, banks’ interest is low in traditional banks; which dissatisfies the users, whereas, it is much higher in digital banks.
The fund that you keep in your account or say, in a savings account, generates a few interests on it, which is given by the bank to users.
The reason why traditional bank provides less interest is that the maintenance of all the system requires higher cost which includes staff, premises, private employee, etc. Therefore, by all the deductions, we get the amount that is decided by the bank.
But on the other hand, there is no such fee for digital banks, because it operates online only. Due to this, digital banks are able to provide high interest on your savings.
Budgeting and Analysis
Nowadays, there is this trend of making everything arranged, and systematic to avoid clashes. This is what digital banks offer to you when it comes to money management.
The money is management tools like Spending calculators, savings features are such, which if you use, can help reduce efforts and your precious time that you would have put in to do it.
Time is the most crucial phenomenon of today’s life, and this has been taken into consideration by all the service providers, nowadays.
Drawbacks of digital banking
As everything has two effects in this world; positive and negative, so do it with online banks. Although digital banks are filled with benefits, there are a few setbacks with the same.
- Slightly unsatisfied customer service:
Because of not having any physical branch, virtual banks seem to lack in providing assistance to their users. While on the traditional banks, users can visit their branch and can have a one-to-one discussion over the issues they are having.
This is something very much needed to be changed in order to make online banking trustable and be able to resolve the queries of their users.
- Depositing Issues:
The most common setback is the issue related to depositing the funds. There have been many cases in which it was observed that even having the cash in hand, users have faced a lot depositing it in their accounts; the same goes with paychecks.
How safe is digital banking?
Since beginning, security has been kept at the top priority for digital banks. As the number of fraud cases surges, it’s necessary for online banks to be encrypted with the highest security possible. And, this has been done as well for the safety of banks.
There are many Fintech companies that use higher security during the making of online-only banks.
With all this, it can be said that digital banks are encrypted with security and are reliable to be used as a financial pal.
What features do digital banks offer that traditional banks don’t?
- Transfer of funds within seconds
- Monthly statement; containing all transfers
- ATM withdrawals and transfer of funds at zero cost.
- Having higher interest on saving and non-saving accounts
- Contain analytics features
- Paperless completion of works
- Getting quick online applications
How to get started with digital banking
The process is easy and does not ask you to pay for it, go anywhere; nothing like that. All the virtual banks have their own mobile applications which can be used by users to access their accounts. Being a novice user, you will need to sign up first. Then after, the documentation process has to take place, electronically. Once you submitted the docs and completed the process; you are ready to use your virtual bank now.
Final Remark!
This carries us to the end of this thorough informative blog: The 7 Best Digital Banks In Australia. With everybody talking about digital banks, we have discussed the best online banks facilitating in Australia. Australia is an advanced nation having lots of people adopting virtual banks and in the midst of it, it was necessary to discuss a few must-use banks in this online banks arena, and so we did. Digital banks’ benefits are outspoken. There is no doubt about people becoming more and more interested in virtual banking in coming time because of its easy to access approach, low to no fee charges, and suitability…