Australian Banks Compared — Big Four vs Challenger Banks (2026)

Australia has one of the most concentrated banking systems in the world, with four major banks — CommBank, ANZ, Westpac, and NAB — dominating the market. But a growing number of challenger banks and neobanks are competing aggressively on rates, fees, and digital experience.

This guide compares the Big Four and key challengers to help you understand what each offers across everyday banking, savings, and home loans.

Key Takeaways

• All Australian banks with an ADI licence protect deposits up to $250,000 per person per institution under the government-backed Financial Claims Scheme
• The Big Four offer the broadest product range and branch access, but not always the best rates
• Challenger banks (ING, Macquarie, Ubank) consistently offer higher savings rates than the Big Four
• Neobanks (Up, Revolut) lead on low fees and app experience but lack some traditional products
• Switching banks in Australia takes as little as 3–5 business days using the Account Switching Service

Big Four Banks at a Glance

Commonwealth Bank (CommBank)

CommBank is Australia’s largest bank by assets and the most widely used by retail customers. Its CommBank app is consistently rated the best banking app in Australia — it includes features like spend tracking, salary advance, home loan management, and a free credit score (from Equifax).

CommBank at a glance:

• Main everyday account: Smart Access (no monthly fee if you deposit $2,000+/month, otherwise $4/month)
• Savings: NetBank Saver and GoalSaver — bonus rates apply with conditions
• Credit cards: range from low-rate to rewards (Awards points, Qantas)
• Home loans: variable and fixed, offset accounts available
• Branches: largest branch network in Australia

CommBank charges a monthly fee on some accounts if deposit conditions aren’t met, which can catch infrequent users off guard.

ANZ

ANZ operates across Australia and is particularly strong in international banking and foreign exchange, given its significant Asia-Pacific presence. In 2024, ANZ completed its acquisition of Suncorp Bank, expanding its Queensland presence significantly.

ANZ at a glance:

• Main everyday account: ANZ Access Advantage ($5/month, waivable with $2,000+/month deposits)
• Savings: ANZ Save and Plus Save — competitive rates with conditions
• Credit cards: Low Rate, Rewards, Platinum and Black options
• Home loans: Plus Home Loan (digital-first, competitive rates)
• International transfers: ANZ is a strong option for overseas money movement

Westpac

Westpac is Australia’s oldest bank (founded 1817) and operates several distinct brands: Westpac itself, St.George Bank, BankSA, Bank of Melbourne, and RAMS (mortgages). This gives it a broad regional presence, especially in South Australia and Victoria.

Westpac at a glance:

• Main everyday account: Everyday Banking (fee waivable with $2,000+/month)
• Savings: Life (bonus rate with monthly conditions) and Bump savings
• Credit cards: Altitude rewards, Low Rate, and Black cards
• Home loans: packaged and standalone options; strong offset account functionality
• Multiple brands mean products and rates can vary between St.George, BankSA etc.

NAB

NAB is Australia’s largest business bank and holds a strong position in agribusiness and commercial lending. For retail customers, its digital subsidiary Ubank is often a better option than NAB’s own retail products, especially for savings rates.

NAB at a glance:

• Main everyday account: NAB Classic Banking (no monthly fee)
• Savings: NAB Reward Saver and iSaver
• Credit cards: rewards and low-rate options
• Home loans: competitive — Base Variable Rate product and offset-linked options
• Business banking: strongest of the Big Four for SMEs

Key Challenger Banks

ING

ING is a Dutch-owned bank operating in Australia as an ADI (Authorised Deposit-Taking Institution). It consistently offers some of the highest savings rates in Australia, though these are conditional.

• Savings Maximiser account: high bonus rate when you deposit $1,000+/month and use ING Orange Everyday for at least 5 transactions
• No monthly fees on everyday accounts
• Strong reputation for customer service
• No branches (entirely online/app)

Macquarie Bank

Macquarie’s retail banking arm (separate from its investment banking business) offers high-interest savings accounts with relatively simple conditions and a slick app experience.

• Savings Account: competitive rate with conditions (must deposit into linked transaction account)
• No monthly account fees
• Strong budgeting features in the app
• No branches

Ubank

Ubank is a NAB-owned neobank offering competitive savings rates, zero monthly fees, and a fully digital experience.

• High Interest Save: among the highest conditional rates in Australia
• No branches, no monthly fees
• Joint accounts available

Up Bank

Up is owned by Bendigo Bank and targets younger Australians with a feature-rich app, spending insights, and automatic saving tools.

• No monthly fees
• High-yield Savers with competitive rates and no strict conditions
• Strong financial wellness tools built into the app
• Good for people who want automated saving

Which Bank Should You Choose?

Deposits Are Protected Up to $250,000

All deposits with APRA-regulated ADIs are protected under the Financial Claims Scheme (FCS) up to $250,000 per depositor per institution. This applies to CommBank, ANZ, Westpac, NAB, ING, Macquarie, Ubank, Up, and all other APRA-regulated banks. It does not apply to non-bank lenders.

FAQ

Are challenger banks safe in Australia? Yes — banks like ING, Macquarie, and Ubank are APRA-regulated ADIs and your deposits up to $250,000 are protected by the Financial Claims Scheme, the same as the Big Four.

Can I have accounts at multiple banks? Yes, and many Australians do — for example, using a Big Four bank for a mortgage while keeping savings at ING or Macquarie for higher rates.

Does switching banks affect my credit score? Simply opening or closing a transaction account or savings account does not affect your credit score. Applying for credit products (loans, credit cards) does generate a credit enquiry.

For advice on which products suit your personal circumstances, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.