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.
Compare bank accounts protected by the bank guarantee
We currently don't have that product, but here are others to consider:
How we picked these
How the Finder Score helps you find a better savings account
The Finder Score is a simple score out of 10. The higher a savings account's score, the better we think it is for the average customer.
We score each savings account in our database of hundreds based on a data-driven methodology with 2 main criteria: Does the account offer a high interest rate? And is it easy for savers to actually earn that rate?
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.
See full bio
Alison's expertise
Alison
has written
659
Finder guides across topics including:
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.
See full bio
Richard's expertise
Richard
has written
677
Finder guides across topics including:
Is Rams covered by the bank guarantee, as it’s owned by Westpac?
Finder
JhezelynMarch 15, 2018Finder
Hi Shaun,
Thank you for your comment.
According to RAMS that RAMS accounts are covered under the Government guarantee, as RAMS accounts are issued by Westpac Banking Corporation.
Regards,
Jhezelyn
AnonySeptember 27, 2017
If a person has millions of dollars, how does one protect their money? I read if you have a joint account of 2 or more it is insured up to 500k? Does this mean a joint account for different banking institutions is the best options i.e. St George, ANZ, etc?
I was led here after watching ‘The Wizard of Lies’ movie.
DanielleSeptember 27, 2017
Hi there!
Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.
We won’t be able to tell which option would be the best for you since it would depend on your personal situation and circumstance. But basically if you have more than $250,000, what you can do is have two different accounts under two different ADI’s so that not just one $250,000 will be covered.
I hope this helps.
Cheers,
Danielle
NomAugust 9, 2017
Hi, do you know if UBank is covered by the government? Thanks!
Finder
JasonAugust 9, 2017Finder
Hi Nom,
Thank you for your enquiry.
Deposits on UBank are guaranteed free of charge under the Government Financial Claims Scheme of up to $250,000 per customer per institution.
hi,just wondering if i invest in ipo wealth is it covered by the government or another identity.
ArnoldJuly 25, 2017
Hi Jamie,
Thanks for your inquiry.
IPO Wealth Fund is a private company and is covered by private entities.
An investment in the IPO Wealth Fund (Fund) is not a bank deposit or liability of the issuer and is subject to a greater risk of loss of capital than a cash investment product. Target returns only. Returns are not guaranteed and there is a risk of negative returns. The contents of this document are not intended as financial product advice and have been prepared without taking into account your investment objectives, financial circumstances or particular needs. You should read the Information Memorandum (IM) for the Fund in full to consider whether an investment is appropriate for you. The IM for the Fund is available at http://www.vascofm.com.
IPO Wealth Pty Ltd ACN 617 039 255 (IPO Wealth) is investment manager of the IPO Wealth Fund (Fund). IPO Wealth is authorized by D H Flinders Pty Ltd ABN 16 141 601 596 AFSL 477782 (D H Flinders) as a corporate authorized representative (No. 001253092) to provide investment management services in respect of the Fund and in no other capacity. Vasco Investment Managers Limited ACN 138 715 009 AFSL 344486 (Vasco) is a trustee of the Fund and the issuer of the Fund’s Information Memorandum (IM).
IPO Wealth only provides its services in respect of the Fund to wholesale clients, as defined in s761G of the Corporations Act.
Neither IPO Wealth, D H Flinders, Vasco or any other party guarantees any income or capital return of the Fund. We strongly recommend that you seek your own professional financial and legal advice prior to any investment decisions.
Hope this information helped.
Cheers,
Arnold
TessMay 8, 2017
Hi,
I was just wondering if the government guarantee covers business accounts?
Thank you.
Finder
MayMay 8, 2017Finder
Hi Tess,
Thank you for your inquiry.
Are you pertaining to the business bank accounts such as but not limited to savings/deposit/transaction accounts? If so, yes. As quoted from the page ASIC’s page relate on banking under “Government guarantee on deposits”
The types of accounts covered by the guarantee are: savings accounts; call accounts; term deposits; current accounts; cheque accounts; debit card accounts; transaction accounts; personal basic accounts; cash management accounts; farm management deposits; pensioner deeming accounts; mortgage offset accounts, either 100 per cent or partial offset that are separate deposit accounts; trustee accounts; and retirement savings accounts.
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.
If you’re unsure whether your business account is guaranteed, you’d be best to directly contact your financial institution.
With convenient access to your funds and a host of flexible features, Bendigo Bank’s Everyday Account can help you manage your day-to-day finances with ease.
The best bank account will help you manage your everyday spending with low fees and easy access to your money. Check out our Top Picks curated by experts.
Manage your finances right from your smartphone with a mobile banking app. Review the mobile banking offerings of the major banks and leave a review of your own.
Important information about this website
Finder makes money from featured partners, but editorial opinions are our own.
Finder is one of Australia's leading comparison websites. We are committed to our readers and stand by our editorial principles.
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
The information provided by Frankie is general in nature and has been prepared without considering your objectives, financial situation or needs. Frankie may make mistakes so it's important that you review the information before deciding. By messaging Frankie, you agree to our Terms and have read our Privacy Policy.
Is Rams covered by the bank guarantee, as it’s owned by Westpac?
Hi Shaun,
Thank you for your comment.
According to RAMS that RAMS accounts are covered under the Government guarantee, as RAMS accounts are issued by Westpac Banking Corporation.
Regards,
Jhezelyn
If a person has millions of dollars, how does one protect their money? I read if you have a joint account of 2 or more it is insured up to 500k? Does this mean a joint account for different banking institutions is the best options i.e. St George, ANZ, etc?
I was led here after watching ‘The Wizard of Lies’ movie.
Hi there!
Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.
We won’t be able to tell which option would be the best for you since it would depend on your personal situation and circumstance. But basically if you have more than $250,000, what you can do is have two different accounts under two different ADI’s so that not just one $250,000 will be covered.
I hope this helps.
Cheers,
Danielle
Hi, do you know if UBank is covered by the government? Thanks!
Hi Nom,
Thank you for your enquiry.
Deposits on UBank are guaranteed free of charge under the Government Financial Claims Scheme of up to $250,000 per customer per institution.
Please check our page for a comparison of UBank Transaction and Savings Accounts for your reference.
Kind regards,
Jason
hi,just wondering if i invest in ipo wealth is it covered by the government or another identity.
Hi Jamie,
Thanks for your inquiry.
IPO Wealth Fund is a private company and is covered by private entities.
An investment in the IPO Wealth Fund (Fund) is not a bank deposit or liability of the issuer and is subject to a greater risk of loss of capital than a cash investment product. Target returns only. Returns are not guaranteed and there is a risk of negative returns. The contents of this document are not intended as financial product advice and have been prepared without taking into account your investment objectives, financial circumstances or particular needs. You should read the Information Memorandum (IM) for the Fund in full to consider whether an investment is appropriate for you. The IM for the Fund is available at http://www.vascofm.com.
IPO Wealth Pty Ltd ACN 617 039 255 (IPO Wealth) is investment manager of the IPO Wealth Fund (Fund). IPO Wealth is authorized by D H Flinders Pty Ltd ABN 16 141 601 596 AFSL 477782 (D H Flinders) as a corporate authorized representative (No. 001253092) to provide investment management services in respect of the Fund and in no other capacity. Vasco Investment Managers Limited ACN 138 715 009 AFSL 344486 (Vasco) is a trustee of the Fund and the issuer of the Fund’s Information Memorandum (IM).
IPO Wealth only provides its services in respect of the Fund to wholesale clients, as defined in s761G of the Corporations Act.
Neither IPO Wealth, D H Flinders, Vasco or any other party guarantees any income or capital return of the Fund. We strongly recommend that you seek your own professional financial and legal advice prior to any investment decisions.
Hope this information helped.
Cheers,
Arnold
Hi,
I was just wondering if the government guarantee covers business accounts?
Thank you.
Hi Tess,
Thank you for your inquiry.
Are you pertaining to the business bank accounts such as but not limited to savings/deposit/transaction accounts? If so, yes. As quoted from the page ASIC’s page relate on banking under “Government guarantee on deposits”
The types of accounts covered by the guarantee are: savings accounts; call accounts; term deposits; current accounts; cheque accounts; debit card accounts; transaction accounts; personal basic accounts; cash management accounts; farm management deposits; pensioner deeming accounts; mortgage offset accounts, either 100 per cent or partial offset that are separate deposit accounts; trustee accounts; and retirement savings accounts.
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.
If you’re unsure whether your business account is guaranteed, you’d be best to directly contact your financial institution.
Cheers,
May