How a transaction account works (2024)

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.
• 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 minimal or no fees. While some bank accounts charge a monthly fee, the NAB Classic Banking account has no monthly fee.

Transaction accounts versus savings accounts

A transaction account is used for day-to-day purchases and withdrawing money for physical cash. You usually earn little to no interest on the money in your transaction account.

A savings account is used to deposit money and save towards a money goal. You earn interest on your balance, which helps you grow your savings. Learn more about how savings accounts work.

See how our savings accounts can help you reach your financial goals.

Explore different types of bank accounts so you can decide which is right for your money goals.

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 fees, no minimum monthly deposits and no ATM withdrawal fees at 4,000 ATMs across Australia.
2. NAB Retirement Account – an everyday account for those aged over 55 and retired with no monthly account fees 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.