Australian Government Bank Guarantee: Which banks are included?
Under the Financial Claims Scheme (FCS), yours savings in a licensed Australian bank are protected by the Australian government. Your money is safe, up to $250,000, even in the very unlikely event your bank collapsed.
If you have your money deposited in any Australian bank, your money is guaranteed up to a total of $250,000. You're covered under the government guarantee if your bank (or building society, credit union) is an Authorised Deposit-Taking Institution (ADI). The regulator APRA maintains a list of these banks and institutions (we've listed them below).
The list of banks covered by the government's guarantee
Click on the sentences below to see the list of banks.
Even if your bank is not in this list, it's almost certainly covered. The bank is probably owned by another bank and operates under its license.
For example, lender Tiimely Home, while not a bank, does offer offset accounts with its home loans. The lender is not listed above but it belongs to the Bendigo and Adelaide Bank. Offset deposits are protected under the FCS.
If you're concerned, check your bank's website. It should mention the FCS in an FAQ, or the fine print at the bottom of the website may mention the bank's ownership structure.
How does the Australian government bank guarantee work?
After the 2008 Global Financial Crisis, the Australian government introduced the Financial Claims Scheme to protect the savings of ordinary Australians if a bank collapsed.
It's fairly simple. Your money in a bank account is safe even if your bank somehow collapses. Up to $250,000 per person, per bank is covered under the FCS.
Australian banks are already strictly regulated, and a collapse is incredibly unlikely, but the FCS is a further guarantee.
Under the FCS your deposits are safe at multiple banks
The FCS guarantees up to $250,000 per person, per Authorised Deposit-taking Institution. This means you could have up to $250,000 saved in multiple banks and it would all be covered.
If you have a partner and they have money saved separately, it's all protected.
Examples: When your savings are covered by the bank guarantee
You have $200,000 saved at Bank A and a further $150,000 saved at Bank B. These are separate banks covered separately under the FCS. Your total of $350,000 is protected.
You have $200,000 saved at Bank A. Your partner has $250,000 saved at the same bank in their name. All that money is covered by the bank guarantee.
You and your partner have $400,000 saved together in one joint account and no other savings. All of this money is protected under the scheme.
Examples: When your savings are only partly covered by the bank guarantee
Sometimes banks operate under the same umbrella and may be considered a single ADI. For example:
You have $200,000 deposited at Big Bank A. You have a further $100,000 deposited at Online Bank B, which is actually owned by Big Bank A. They're a single ADI under the FCS rules.
You therefore have $300,000 saved in total with the same ADI.
In an unprecedented event, Big Bank A collapses and takes Online Bank B with it. The government guarantee kicks in and $250,000 of your savings is safe.
But the remaining $50,000 is not covered.
What types of accounts does the guarantee cover?
The government guarantee covers most deposit accounts, including:
What types of accounts aren't included in the guarantee?
Share trading accounts (only the money you have sitting in a cash management account is covered)
Debt and credit products
Super fund accounts
SMSF investments (unless you have money in cash with an ADI)
Personal loan accounts
Money on prepaid cards or gift cards
Is it possible your bank will go bankrupt?
Banks in Australia have closed down or collapsed, but it's very rare. The State Bank of South Australia collapsed in 1991, but deposits were backed by the state government.
Banks in Australia today are highly regulated. APRA, the bank regulator, requires banks to main adequate levels of capital to meet unexpected consumer demand for cash, or sudden falls in the economy. These standards are higher than international minimum requirements.
The FCS discourages bank customers from panicking on bad news and withdrawing deposits. Savings are protected even in a worst-case scenario.
The Xinja Example
The online bank Xinja is the rare example of an Australian bank closing in recent memory. Xinja launched in 2017 and offered savings accounts as an ADI with its own banking license.
But in 2020 it closed up due to a lack of funds. Closed, it should be stressed. It did not collapse.
Xinja customers had their savings returned promptly. Customers did not even need to rely on FCS protections.
But if the bank had collapsed instead of winding down in an orderly fashion, customers would have been covered by the government's guarantee.
How are joint accounts covered?
For joint accounts, each person is entitled to an individual guarantee. For example, for a joint account holding two people, the account is covered up to $500,000.
More questions about the Financial Claims Scheme
Yes, its does. The residency status of the account holder is irrelevant. If you're eligible and able to open an account and deposit money with a licensed ADI in Australia, then your deposit up to $250,000 is protected by the scheme.
Yes, money held in an Australian ADI by an SMSF or trust is included in the scheme. The SMSF is considered to be one account holder, regardless of how many individual members or trustees are listed on the account. This means that if your SMSF has four members and there's a total of $500,000 in the bank account, it's treated as one account holder and only $250,000 is protected under the scheme.
Because an SMSF is considered to be its own account holder, if you have a personal account in your name and also an SMSF cash account with the same ADI, both would be protected (up to $250,000 each).
Your mortgage is a loan from the bank, so it's not covered in the government guarantee. If in the unlikely event that your bank did fail, deposit holders would be covered by the government and mortgages will likely be transferred to a partner bank or lender.
Rest assured, digital banks need to go through a strict regulatory approval process to be granted an ADI license. If they're granted a full ADI license then they are included in the Government Guarantee Scheme and your deposit up to $250,000 is protected.
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Alison is an editor at Finder and a personal finance journalist with over 10 years of experience, having contributed to major financial institutions and publications such as Westpac, Money Magazine, and Yahoo Finance. She is frequently quoted in media outlets like SmartCompany and SBS, offering expert insights on superannuation and money management. Alison holds a Bachelor of Communications in Public Relations and Journalism from the University of Newcastle, and has earned three ASIC RG146 certifications in superannuation, securities and managed investments and general financial advice, ensuring her expertise is fully aligned with ASIC standards.
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Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University.
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Is the “depositor” covered by the government guarantee for say a term deposit, the superannuation fund or the beneficiaries in the fund. That is, if there are 2 beneficiaries in a super fund are they each covered to $250k or is it only $125 each?
Finder
JhezAugust 28, 2019Finder
Hi Mike,
Thank you for your comment.
The Australian Government has guaranteed deposits up to $250,000 in Authorised Deposit-taking Institutions (ADIs) such as your bank, building society or credit union. This means that this money is guaranteed if anything happens to the ADI (bank). The cap applies per person and per ADI.
So, if you have up to $250,000 deposit to your bank, and it’s part of the ADI and something happens to your bank, you will be guaranteed $250,000. If you’re no longer available to claim it, or you’re already gone, your declared beneficiaries can claim it. It’s up to your beneficiaries how they will divide it. What’s true is that the guarantee is per per person, per account. Hope this helps.
Regards,
Jhezelyn
KevinJuly 8, 2019
Would a self-managed super fund for my wife and I be able to have two term deposits of $250k guaranteed by the government.
Finder
JeniJuly 9, 2019Finder
Hi Kevin,
Thank you for getting in touch with Finder.
Term deposits are covered as long as you deposit in one of Authorised Deposit-taking Institutions (ADIs) in Australia, however please note that the Australian Government guarantees deposits up to $250,000 per depositor’s name and bank/institution.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
NoelineJune 15, 2019
Is the Australian Unity Bank covered by Goverment Guarantee on Term Deposits
NikkiJune 15, 2019
Hi Noeline,
Thanks for your inquiry.
Yes, Australian Unity is covered by the Australian Government guarantee on deposits covering up to $250,000 per person.
Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Best,
Nikki
JosephineJune 12, 2019
Is CUA bank government guaranteed for term deposits? Thank you.
Finder
JhezJune 13, 2019Finder
Hi Josephine,
Thank you for your comment.
Yes. Deposits up to $250, 000 per account holder are guaranteed by the Federal Government under the Financial Claims Scheme.
Regards,
Jhezelyn
JimApril 4, 2019
We are two people with joint accounts. If we have two separate joint account term deposits of 250000 in two different banks are we covered under the govt guarantee for 500000? Thanks
NikkiApril 4, 2019
Hi Jim,
Thanks for getting in touch! Yes, you will be covered the 500,000 govt’ guarantee for each bank account you have on two separate banks.
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Is the “depositor” covered by the government guarantee for say a term deposit, the superannuation fund or the beneficiaries in the fund. That is, if there are 2 beneficiaries in a super fund are they each covered to $250k or is it only $125 each?
Hi Mike,
Thank you for your comment.
The Australian Government has guaranteed deposits up to $250,000 in Authorised Deposit-taking Institutions (ADIs) such as your bank, building society or credit union. This means that this money is guaranteed if anything happens to the ADI (bank). The cap applies per person and per ADI.
So, if you have up to $250,000 deposit to your bank, and it’s part of the ADI and something happens to your bank, you will be guaranteed $250,000. If you’re no longer available to claim it, or you’re already gone, your declared beneficiaries can claim it. It’s up to your beneficiaries how they will divide it. What’s true is that the guarantee is per per person, per account. Hope this helps.
Regards,
Jhezelyn
Would a self-managed super fund for my wife and I be able to have two term deposits of $250k guaranteed by the government.
Hi Kevin,
Thank you for getting in touch with Finder.
Term deposits are covered as long as you deposit in one of Authorised Deposit-taking Institutions (ADIs) in Australia, however please note that the Australian Government guarantees deposits up to $250,000 per depositor’s name and bank/institution.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
Is the Australian Unity Bank covered by Goverment Guarantee on Term Deposits
Hi Noeline,
Thanks for your inquiry.
Yes, Australian Unity is covered by the Australian Government guarantee on deposits covering up to $250,000 per person.
Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Best,
Nikki
Is CUA bank government guaranteed for term deposits? Thank you.
Hi Josephine,
Thank you for your comment.
Yes. Deposits up to $250, 000 per account holder are guaranteed by the Federal Government under the Financial Claims Scheme.
Regards,
Jhezelyn
We are two people with joint accounts. If we have two separate joint account term deposits of 250000 in two different banks are we covered under the govt guarantee for 500000? Thanks
Hi Jim,
Thanks for getting in touch! Yes, you will be covered the 500,000 govt’ guarantee for each bank account you have on two separate banks.
Hope this helps!
Best,
Nikki