Best banks in Australia for savings and loans

When the topic is about selecting the best bank, Australians have no shortage of options. The banking sector in Australia is strong, competitive, and stringently enforced. Most Australian banks are considered safe, providing a wide range of financial services to customers. But customers are overwhelmed by the decision of which bank is exceptionally remarkable. This article analyses the best banks in Australia in terms of customer service, technological advancement, range of products, and reputation.

Big four banks driving national growth

The big banks of Australia include ANZ, CBA, NAB, and Westpac Banking Corporation. These are the influential forces of the market, accounting for about 70-74% of household deposits and home loans. These banks have a lot of market share and assets. The following services are: 

1. Australia and New Zealand Banking Group (ANZ)

• ANZ offers consumers and customers, business users, personal users, and corporate users access to a wide range of banking and financial services. 
• It offers services that include credit cards, bank accounts, home loans, consumer loans, insurance and investment opportunities.
• It offers tailor-made financing, payment services and digital utilities for business customers.
• Institutional clients also access specialised transaction banking, financial market proficiency, and digital platforms. 

2. Commonwealth Bank of Australia (CBA)

• Commonwealth Bank of Australia offers a complete spectrum of personal financial services, including credit cards, personal and home loans, a savings account, commercial banking, superannuation, insurance, and financial planning services. 
• It also provides customers with tech tools, a mobile app with characteristics like Bill Sense, Spend Tracker, and multiple perks.

3. Westpac Banking corporation

• It was founded in 1817. It started as the Bank of New South Wales and is regarded as Australia’s first bank and an ancient one. 
• The bank’s name was changed to Westpac Banking Corporation in 1982 after a combination with the Commercial Bank of Australia. 
• It offers favourable home loans and savings accounts to clients. 
• It is renowned for its long-term environmental policies and community programs
• It has a powerful online and mobile banking platform. 

4. National Australia Bank (NAB)

• It is widely used in the small business sector and by personal customers. It offers attractive fixed-term investments and personal loans to clients. 
• It has a heightened focus on customer service and digital technology. It also provides transformative digital banking services to customers.

Other best banks in Australia beyond the big four

While the big four banks dominate the financial landscape of Australia, the following are the other key players in the Australian banking sector:

1. Macquarie Bank

• The Macquarie Bank is gaining widespread attention and has grown rapidly.
• It is regarded as the fifth-largest bank in Australia concerning household deposits and home lending. The reason for its rapid growth is its performance in the mortgage market, especially through the broker channel and an emphasis on cost effectiveness and digital platforms improvement.
• It offers simple, fast, and secure solutions for clients. 

2. ING Australia

• It is recognisable as a forward-thinking direct bank that focuses on simple products with potential benefits for customers, as well as a quality digital customer experience. 
• The services of this bank include high-interest savings accounts, free online savings accounts, home and personal loans that can be obtained competently and promise personalised services and an easy banking experience. 

3. Suncorp Bank 

• It is also one of the main Australian banks and a prominent institution. It provides a wide range of financial assistance to clients. 
• Clients can access in-branch services, Suncorp Bank ATMs, online banking, the Suncorp Bank app, and numerous other services.

4. Bankwest

• Another well-known bank serving personal and business banking needs. They offer various accounts, savings accounts, credit cards, personal loans, and home loans. 
• They assist first-home buyers, offer custom rewards such as discounts at local locations, and provide the ability to manage your own account. 

Best customer-owned banks in Australia

Aside from these major banks, there’s a range of other best customer-owned banks in Australia, which are known for offering customers a large range of financial services. These banks include:

1. Great Southern Bank

• The highest score is usually based on the customer satisfaction attributes, especially product offer competitiveness, especially mortgage loans, and personalised services. 
• It also highlights ownership and community involvement of the customer.

2. Bank Australia

• The first customer-owned bank of Australia, Bank Australia, is member-owned and mainly focuses on ethical banking practices. 
• It offers many services, including competitive home loans, investments, sustainable loans, and savings products. It is acclaimed for its customer service and transparency.

Best digital and neobanks in Australia

Digital and new banks are becoming popular for their convenience, lower fees, and user-friendly apps. 

1. UP Bank 

• Up Bank is the mobile-first Australian bank. It provides a user-friendly app experience to clients. 
• It offers services, including Up Everyday Accounts, Up Essential Saver accounts, debit Mastercards, online wallets, and convenient options for easy payments with Osko and PayID. 

2. 86 400 (now Ubank)

• It was one of the popular neobanks that provided customers with the convenience of digital transactions and savings accounts, online mortgage broking, and modern banking services like connecting accounts from over 150 institutions. 
• However, it is no longer known as an independent entity and has been taken over by NAB and integrated fully into the Ubank brand in 2022. 

Factors to consider when choosing a bank

Before changing banks, consider the following factors to ensure the bank meets your requirements: 

• Charges: Choose the bank with fewer or no monthly charges and fee-free account options
• Interest rates: Analyse savings yield against mortgage costs for better results or lower payments. 
• Digital customer experience: Look for the banks that ensure secure, reliable, and user-friendly apps. 
• Client service: Customer service should be the priority. Select the bank after reading the review and ratings to make sure that the bank is responsive.
• Moral position: If it holds significance, search banks with verifiable, ethical and socially responsible investments.

Therefore, ensure these factors before switching to a new financial institution.

Potential drawbacks to watch out for

While most of the banks offer excellent financial experience, there is always a give and take. Inspect the following things carefully: 

• Branch/ ATM accessibility: If you’d rather bank in person, some smaller or digital banks could have minimal physical presence.
• Policy changes and mergers: The evolving banking landscape (mergers, investments, regulatory adjustments) can have an impact on the offers. 
• Customer service reviews: Always check the recent feedback of the customer service. Sometimes, a bank can have strong financials but disappointing services.
• Changes in interest rates: Saving rates and mortgage rates can change and sometimes quickly. So sometimes things are not what they seem. 
• Hidden or conditional fees: Sometimes ‘no fee’ account still charges for some transactions, foreign exchanges, or forgoes the fees under certain circumstances.

Final thoughts 

Australia’s banking system is enormous. There are many choices for Australians. They can bank with major organisations, a digital bank or a community-focused, customer-owned bank. So, whether you are trying to build financial security, save for your first home, or just want to do daily transactions and pay low or no fees, it will all depend on your personal choice and values. Australians can find a bank that suits the way they live by comparing products, services and values.