Your money is protected by 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 this money is guaranteed if the institution collapses.
This cap applies per person and per ADI. If you have separate accounts with different protected banks with less than $250,000 in them, you will be covered for both accounts. If you have more than $250,000 in a single account, you won't be covered for the amount over $250,000. If you have $250,000 with two different "brands" but they're operated under the same ADI, you'll only get $250,000 in total.
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 and St.George). If you have multiple accounts under different brand names but all under one ADI, the guarantee only applies to the ADI and not the different brands.
Philip wonders if his deposits are guaranteed by the Government Guarantee
Philip currently has $250,000 deposited into a bank account with NAB and another $250,000 deposited into UBank.
After doing some further research, Philip has realised that UBank is a brand under NAB, so he decides to move some of his money to a CommBank savings account. Commbank is not a brand under NAB.
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 doesn't the 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)
- QT Mutual Bank Limited
- 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 Victoria Teachers Mutual Bank)
- 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 Direct)
- Rabobank Australia Limited