| Commonwealth Bank | Westpac | NAB | Bank of Queensland | Bendigo Bank |
|---|---|---|---|---|
| Bankwest | RAMS | Ubank | Virgin Money | Adelaide Bank |
| Aussie (as a major shareholder) | St.George | MLC | Investec Bank | Delphi Bank |
| Colonial First State | BankSA | Bank of New Zealand | Home Building Society Ltd | Rural Bank |
| Bank of Melbourne | 86 400 | ME Bank | Up |
| Response | Male | Female |
|---|---|---|
| A competitive interest rate | 52.26% | 51.55% |
| A bank I know and trust | 43.42% | 43.97% |
| No restrictions on monthly withdrawals | 25.19% | 27.93% |
| A simple application process | 19.17% | 17.24% |
| The connected transaction account | 12.59% | 13.97% |
| A low deposit requirement | 10.9% | 11.03% |
| Extra features like round-ups or savings buckets | 3.76% | 4.14% |
| None of the above | 3.57% | 3.45% |
| Other | 1.88% | 2.76% |
For consumers looking for a better deal, it may be of concern that many of the alternative lenders are actually owned by the big three banks – Commonwealth Bank, Westpac and NAB. This matters, because the Australian government's Financial Claims Scheme (FCS), which guarantees the security of your money in banks up to $250,000 per institution, applies to a bank's subsidiaries as well. Without knowing which banks own what, your savings might not be as secure as you might think.
For example, let's say you had $250,000 in a savings account with ubank and another $250,000 in a savings account with NAB. Because ubank is owned by NAB, these two banks share the one banking licence. This means that the Australian government will only guarantee your deposit up to $250,000 with both ubank and NAB, not the full $500,000 you have deposited.
However, because ubank and Westpac are operating under different licences, if you had your $500,000 split between these two banks instead the full amount would be covered under the scheme.
There are some benefits to your bank being owned by a larger bank too. You usually get access to the larger banks ATM network all over the world, which is convenient and can also save you money in fees.
For example, St.George, BankSA, RAMS and Bank of Melbourne are all owned by Westpac. Westpac has the largest global ATM network with more 50,000 ATMs around the globe. If you're a customer of one of these smaller banks, you'll also get fee-free access to Westpac's huge ATM network.
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When used wisely, a debit card provides you with great flexibility when it comes to handling your everyday financial needs.
I received a financial news letter that stated ” under existing legislation, all four big banks are seen as a single ‘ADI’” and as a result deposits are not guaranteed above a cumulative $250,000.
Is this the case?
Hi Peter,
Thanks for your inquiry.
Just for clarification, when you have 250,000 with two different “brands” but they’re operated under the same ADI, you’ll only get $250,000 in total as a guarantee. We have an article about the Australian Government Guarantee Scheme that explains this.
The government guarantee covers the underlying ADI and not different brands. Some ADIs offer multiple accounts under different brand names (like 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.
Hope this helps.
Cheers,
May
Who owns Citibank and are deposits guaranteed with them?
Hi Jo,
Thanks for your question.
Citibank in Australia is part of Citigroup Inc., an American multinational investment banking and financial services corporation.
Deposits in Citibank are covered by government guarantee up to $250,000 per person, per institution.
Regards,
Liezl
Is the ME Bank (owned by the Industry Super Funds parent) an Approved Deposit Institution. I’m asking because I must have the govt. guarantee. Thanks
Anndy(?) ,
“..of up to $250,000 per person, per institution” means exactly that, they may pay up to, but given the small (SIC) amount available to cover the far larger amount in investments, they cannot!
Hi Eric,
Thanks for your comment.
The Australian Government has guaranteed deposits up to $250,000 in Authorised Deposit-taking Institutions (ADIs). This means that this money is guaranteed if anything happens to the ADI.
Cheers,
Anndy
Hi Paul,
Thanks for your question.
ME Bank is owned by industry super funds and isn’t owned by a specific bank.
ME Bank savings accounts have a government guarantee of up to $250,000 per person, per institution.
Cheers,
Anndy
Who owns ING Direct as at 2017? It seems it was acquired by ANZ in 2009.I can’t find any up to date information if this is still the case.
Hi Pam,
Thanks for your question.
On the ING Direct website, it still says that the trading name of ING Bank (Australia) Limited is wholly owned by ING Group.
Cheers,
Anndy
Is there any overseas ownership of the ANZ Bank?
For example the Chase Manhattan Bank.
Hi Mary,
Thanks for your question.
ANZ has global presence as they have branches or affiliates in over 30 countries. For more details, you can visit the Worldwide page of the ANZ website.
Cheers,
Anndy