The Australian Government guarantees deposits, up to $250,000, that are held in Authorised Deposit-taking Institutions (ADIs)– also known as banks and credit unions. The government does this to reassure consumers that if something happens to their bank or credit union, their deposits will be repaid to them by the government. The government guarantee on deposits gives people confidence to deposit cash into smaller institutions in particular. But there are some details that you need to keep in mind. What is the government’s deposit guarantee? The Australian government’s guarantee on deposits in the banking system is called the Financial Claims Scheme (FCS). It protects the deposits in Australian banks and credit unions if the institution fails or is unable to pay its debts or honour withdrawal requests from account holders. In the unlikely event that a bank or credit union ‘fails’ of is unable to fund withdrawals, the government has accepted liability to repay all depositors, up to $250,000 each. How much is the government deposit guarantee? The government’s deposit guarantee, called the Financial Claims Scheme, covers the first $250,000 of deposits held by an account holder in one ADI. Any money over that amount is not covered. People with more than $250,000 to deposit should consider splitting their money into more than one deposit and sharing it around different institutions in order to ensure that it is completely covered. What is the big catch with the FCS? One big catch with the FCS is that it is limited to $250,000 per institution. So if you have more than $250,000 to deposit, you need to split the money and put it in more than one institution to be covered. BUT – did you know that many of Australia’s banks and lenders are merely brand names of other Australian banks? And the government doesn’t care about branding, just who is really behind the bank. The Australian Prudential Regulatory Authority warns: “When determining whether the total value of all your accounts with an ADI is below the $250,000.00 limit, it’s important to include any accounts that you hold which have been marketed by the ADI under a different name.” For example, RAMS, St George Bank, Bank of Melbourne and BankSA are all owned by Westpac, so all of these brands are just one ADI – the Westpac Group. How the government deposit guarantee scheme works Case study: Mavis has $300,000 in term deposits and savings accounts. She wants all her money to be covered by the scheme so she withdraws more than $50,000 and deposits that in another bank. Now Mavis has less than $250,000 in two separate institutions so her whole $300,000 is covered by the FCS. Which banks and credit unions are covered by the federal government’s deposit guarantee (Financial Claims Scheme)? This list of banks and credit unions covered by the government deposit guarantee are all Australian authorised deposit taking institutions. 86400 AMP Bank Australia and New Zealand Banking Group Australian Central Credit Union trading as People's Choice Credit Union Australian Military Bank Australian Unity Bank Auswide Bank B&E Ltd trading as Bank of us Bananacoast Community Credit Union Bank Australia Bank First Bank of Queensland Bank of us BankVic Bendigo and Adelaide Bank Beyond Bank Australia BNK Banking Corporation Border Bank Cairns Penny Savings & Loans Central Murray Credit Union Central West Credit Union Coastline Credit Union Commonwealth Bank of Australia Community First Credit Union Credit Union Australia Credit Union SA Defence Bank Dnister Ukrainian Credit Co-operative EECU trading as Nexus Mutual Endeavour Mutual Bank Family First Credit Union Fire Service Credit Union Firefighters & Affiliates Credit Co-operative Firefighters Mutual Bank First Choice Credit Union First Option Bank Ford Co-operative Credit Society trading as Geelong Bank G&C Mutual Bank Gateway Bank Geelong Bank Goulburn Murray Credit Union Co-operative Greater Bank Health Professionals Bank Heritage Bank Horizon Credit Union Hume Bank Hunter United Employees' Credit Union IMB Bank Illawarra Credit Union Indue Judo Bank Laboratories Credit Union Lithuanian Co-operative Credit Society “Talka” Lutheran Laypeople's League of Australia Lysaght Credit Union MacArthur Credit Union Macquarie Bank Macquarie Credit Union Maitland Mutual Building Society MCU Members Banking Group trading as RACQ Bank Members Equity Bank MyLifeMyFinance MyState Bank National Australia Bank Newcastle Permanent Building Society Nexus Mutual Northern Inland Credit Union Orange Credit Union People's Choice Credit Union Police Bank trading as Border Bank Police Credit Union Police Financial Services trading as BankVic Police & Nurses trading as P&N Bank Pulse Credit Union QPCU trading as QBANK Qudos Mutual trading as Qudos Bank Queensland Country Credit Union RACQ Bank Railways Credit Union trading as MOVE Regional Australia Bank South West Slopes Credit Union Southern Cross Credit Union South-West Credit Union Co-Operative Summerland Financial Services trading as Summerland Credit Union Suncorp-Metway Sydney Credit Union Teachers Mutual Bank Limited Broken Hill Community Credit Union The Capricornian Traditional Credit Union Transport Mutual Credit Union Tyro Payments UniBank Unity Bank Victoria Teachers volt bank Warwick Credit Union WAW Credit Union Co-Operative Westpac Banking Corporation Woolworths Employees' Credit Union Xinja Bank You can compare savings accounts and term deposits from Australia’s banks and credit unions at InfoChoice. The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.