Your money is safe with online banks like UBank and ING under the Australian Government Guarantee Scheme
The Australian Government guarantees deposits up to $250,000 in Authorised Deposit-taking Institutions (ADIs) such as banks, building societies or credit unions. This means that if something happens to the bank, this money is guaranteed by the government to be paid back to you. Your deposit up to$250,000 is safe with all Australian ADIs, including online banks like UBank, ING and ME Bank, as well as smaller credit unions. All ADIs are regulated in the same way as the Big Four banks.
standard variable rate
High interest savings account offer
Earn up to 2.87% p.a. by linking your USaver account to a UBank Ultra transaction account and transferring at least $200 per month into either account. This offer is available on balances up to $200,000.
- Maximum Rate: 2.87% p.a.
- Standard Variable Rate: 1.81% p.a.
- Monthly deposit required: $200.00
- Monthly fees: $0.00
Compare bank accounts protected by the Australian Government Guarantee Scheme
How does the Australian Government Guarantee work?
The Australian bank Government Guarantee protects your deposit up to the value of $250,000. This cap applies per person and per Authorised Deposit-taking Institution (ADI). If you have separate bank accounts with different banks with less than $250,000 in each of them, you will be covered for both accounts. If you have more than $250,000 in a single bank account (or term deposit, or savings account), you won't be covered for the amount over $250,000.
It's important to understand that the government guarantee covers the underlying ADI, and not different brands. Some ADIs offer multiple accounts under different brand names (such as Westpac, Bank SA and St.George). If you have multiple accounts under different brand names but all under one ADI, the guarantee only applies to the one ADI and not the different brands. For example, UBank is protected under the Government Guarantee Scheme, but UBank is owned by NAB. This means that if you have $250,000 in an account with UBank, and $250,000 in an account with NAB, you'll only have $250,000 guaranteed as both banks operate under the same ADI licence.
You might need to double check with your ADI to make sure that you don't fall into this trap. 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. Find out if your bank is a sub-brand of a larger ADI here.
What types of accounts does the guarantee cover?
The government guarantee covers a multitude of accounts, including:
What types of accounts don't guarantee cover?
- Share trading accounts
- Offshore bank accounts (accounts established in a country other than Australia)
What happens if the bank goes bankrupt?
Are you still protected under the guarantee if your bank goes bankrupt? The short answer is yes. If your ADI is mentioned on the list below, it’s covered by the guarantee. So if you have money in an institution that goes bankrupt, you are protected so long as your account balance doesn’t exceed $250,000.
There are many Australian-owned banks and foreign subsidiary banks that are covered by the Australian Government Guarantee Scheme. The full list is below:
- AMP Bank Ltd
- Australia and New Zealand Banking Group Limited
- Australian Military Bank Ltd
- Auswide Bank Ltd
- Bank of Queensland Ltd
- Bendigo and Adelaide Bank Limited
- Commonwealth Bank of Australia
- Community CPS Australia Limited (trading as Beyond Bank Australia)
- Defence Bank Limited
- Heritage Bank Limited
- Hume Bank Limited
- IMB Limited (trading as IMB Bank)
- Macquarie Bank Limited
- Mecu Limited (Trading as Bank Australia)
- Members Equity Bank Limited
- MyState Bank Limited
- National Australia Bank Limited
- Police Bank Ltd
- Police Financial Services Limited (trading as BankVic)
- Police & Nurses Limited (trading as P&N Bank)
- RACQ Bank
- Rural Bank Limited (a subsidiary of Bendigo and Adelaide Bank Limited)
- SGE Mutual Limited (trading as G&C Mutual Bank)
- Suncor-Metway Limited
- Teachers Mutual Bank Limited
- Victoria Teachers Limited (trading as Bank First)
- Westpac Banking Corporation
Foreign subsidiary banks
- Arab Bank of Australia Limited
- Bank of China (Australia) Limited
- Bank of Sydney Ltd
- Citigroup Pty Limited
- HSBC Bank Australia Limited
- ING Bank (Australia) Limited (trading as ING)
- Rabobank Australia Limited