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
Alison Banney is the money editorial manager at Finder. She covers all areas of personal finance, and her areas of expertise are superannuation, banking and saving. She has written about finance for 10 years, having previously worked at Westpac and written for several other major banks and super funds. See full bio
Alison's expertise
Alison has written 626 Finder guides across topics including:
Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio
Richard's expertise
Richard has written 553 Finder guides across topics including:
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G’day Finder. Could you tell me if Bank Australia (formerly bankmecu) is covered by this? Also what about Mystatebank?
I couldn’t find the info on their websites.
Thanks very much!
NikkiNovember 14, 2018
Hi Daniel,
Thanks for getting in touch! Yes, Bank Australia is government guaranteed as well as Mystatebank.
Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Best,
Nikki
tonyOctober 25, 2018
is the bank of sydney government backed for fixed term deposits as we wish to invest but would like to make sure. thankyou
Finder
JohnOctober 25, 2018Finder
Hi Tony,
Thank you for your question.
Yes, the Bank of Sydney is covered by the Australian Guarantee Scheme. Hope this helps!
Cheers,
Reggie
VitOctober 5, 2018
Is BankSA covered by the bank guarantee?
Finder
JohnOctober 5, 2018Finder
Hi Vit,
Thank you for leaving a question.
BankSA is a division of Westpac Banking Corporation which is covered by the bank guarantee of up to $250,000. Hope this helps.
Cheers,
Reggie
JillAugust 22, 2018
Are Rabo Direct and ING both cover by Australian Guarantee Scheme?
JoelAugust 22, 2018
Hi Jill,
Thanks for leaving a question on finder.
Both RaboDirect and ING is covered by the Australian Guarantee Scheme. :)
Cheers,
Joel
JoJune 3, 2018
Hi, I am wondering if ING bank is covered under government guarantee of up to $250,000? Thank you
Finder
JeniJune 3, 2018Finder
Hi Jo,
Thank you for getting in touch with Finder.
Yes, ING bank is covered under a government guarantee of up to $250,000. You may check other banks, building societies, credit unions, and other authorised deposit-taking institutions that are covered under the Financial Claims Scheme.
I hope this helps.
Have a great day!
Cheers,
Jeni
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G’day Finder. Could you tell me if Bank Australia (formerly bankmecu) is covered by this? Also what about Mystatebank?
I couldn’t find the info on their websites.
Thanks very much!
Hi Daniel,
Thanks for getting in touch! Yes, Bank Australia is government guaranteed as well as Mystatebank.
Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Best,
Nikki
is the bank of sydney government backed for fixed term deposits as we wish to invest but would like to make sure. thankyou
Hi Tony,
Thank you for your question.
Yes, the Bank of Sydney is covered by the Australian Guarantee Scheme. Hope this helps!
Cheers,
Reggie
Is BankSA covered by the bank guarantee?
Hi Vit,
Thank you for leaving a question.
BankSA is a division of Westpac Banking Corporation which is covered by the bank guarantee of up to $250,000. Hope this helps.
Cheers,
Reggie
Are Rabo Direct and ING both cover by Australian Guarantee Scheme?
Hi Jill,
Thanks for leaving a question on finder.
Both RaboDirect and ING is covered by the Australian Guarantee Scheme. :)
Cheers,
Joel
Hi, I am wondering if ING bank is covered under government guarantee of up to $250,000? Thank you
Hi Jo,
Thank you for getting in touch with Finder.
Yes, ING bank is covered under a government guarantee of up to $250,000. You may check other banks, building societies, credit unions, and other authorised deposit-taking institutions that are covered under the Financial Claims Scheme.
I hope this helps.
Have a great day!
Cheers,
Jeni