How a transaction account works

A transaction account is an everyday bank account you use to manage your day-to-day banking. Once set up, you can get your salary paid into a transaction account and use it to pay for regular purchases like takeaway coffee, groceries and bills. You can also use your transaction account to transfer money to a savings account. You might also hear a transaction account referred to as a ‘checking account’.

Benefits of a transaction account

Transaction accounts come with several benefits:

• Link a debit card to your transaction account. You can then use that debit card to pay for goods and services in-store and online, as well as withdraw cash from ATMs. Learn about NAB Visa Debit cards.
• Set up online banking and easily access your account through NAB Internet Banking or the NAB app.
• Use online banking to easily view your account transactions and stay on top of your finances. Use the Spending tool to view a categorised view of your spending and help you manage your budget.
• Set up direct debits so that regular payments like your rent, mortgage, electricity bill or streaming services can be deducted directly from your account.
• Save account details for when you need to quickly transfer money to other people.
• Transfer money to your savings account to save up for big purchases like a holiday or a house deposit, and smaller savings goals like new shoes or a laptop. You can also set up reoccurring transfers, so money is automatically sent to your savings account each time you get paid.
• Take advantage of accounts with no monthly account fee. While some bank accounts charge a monthly fee, the NAB Classic Banking account has no monthly account fee.

Transaction accounts versus savings accounts

A transaction account is more than just an account for your daily expenses - it’s an account to help your financial life flow smoothly. While you may earn little to no interest on your transaction account, its real value lies in the convenience it offers for your everyday transactions and to withdraw money. This account type is suitable for purchases, groceries, bills and day-to-day spending.

Your savings account can be seen as your financial growth partner where you can deposit money to help you reach a savings goal. These account types tend to accrue interest on your account balance and don’t have a debit card attached to the account, limiting your ability to withdraw funds and spend unnecessarily. It is designed to help you grow your savings towards those big purchases and future goals. Learn more about how savings accounts work.

While these account types are two of the many account types you can open, it’s a good idea to get an understanding of what other accounts offer to guide you through your options. Understanding what they are and how they might benefit your financial situation and needs will help you make an informed decision that empowers your financial future.

Open a transaction account

We offer two types of transaction accounts depending on your needs:

1. NAB Classic Banking account – an everyday bank account with no monthly account fee, no minimum monthly deposits and no ATM withdrawal fee at 4,000 ATMs across Australia.
2. NAB Retirement Account – an everyday account for those aged over 55 and retired with no monthly account fee or minimum monthly deposits, and the ability to earn interest daily on your balance.

Learn how to open a bank account online. If you link a debit card to your account, the card may attract a fee.