bank protect money

How Australian banks protect your savings

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?

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:

Australian-owned banks:

Foreign subsidiary banks

An exhaustive list of ADIs

Shirley Liu

Shirley is's publisher for banking and investments. She has completed a Masters in Commerce (Finance) and is the author of hundreds of articles. She is passionate about helping Aussies make an informed decision, save money and find the best deal for their needs.

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2 Responses

  1. Default Gravatar
    TessMay 8, 2017


    I was just wondering if the government guarantee covers business accounts?

    Thank you.

    • Staff
      MayMay 8, 2017Staff

      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.


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