Having a savings account in Australia is probably one of the most common ways to save your hard-earned money. It’s convenient and easy to do, with so many banks to choose from. Of course, you want to keep your money protected, right? Well, it doesn’t stop at just depositing money to your Australian bank account.
Australian banks protect your money through the Australian Government Deposit Guarantee. This guarantees deposit of no more than $250,000 in Authorised Deposit-taking Institutions or ADIs.
In the banking industry, Australian banks protect your money through the Australian Government Deposit Guarantee. This guarantees deposit of up to $250,000 in Authorised Deposit-taking Institutions or ADIs. These include Australian-owned banks, credit unions, building societies, and foreign subsidiary banks. You can find the list of ADIs online, or you can ask the financial institution to be sure.
Here are other things worth-knowing about the Australian Government Deposit Guarantee:
What accounts does it cover?
The types of accounts that the guarantee covers include savings accounts, cheque accounts, call accounts, term deposits, transaction accounts, mortgage offset accounts, and trustee accounts. Take note that share trading accounts and offshore bank accounts, or those that were set up in a different country, are not covered by the guarantee.
What if your bank goes bankrupt?
You may think that your money is no longer protected once the bank goes bankrupt, but if it is an ADI, your money will still be protected under the guarantee, provider that it is not more than $250,000 per financial institution.
The guarantee applies per individual and per ADI.
This means that if you have bank accounts with less than $250,000 (per account) in different banks, your money will be covered for all accounts. However, if you have more than one Australian bank account with one ADI, the guarantee is applicable to the ADI, up to $250,000. Check with your ADI to ensure that all of your money will be protected.
With the Australian Government Deposit Guarantee, you can be sure that your hard-earned money is protected if anything happens to the ADI or financial institution. If you’re planning to open an Australian bank account, make sure to do a bank account comparison first, as banks differ in offerings and features such as interest rates. Compare bank accounts and choose what meets your needs and financial situation.
Do you know other things worth-knowing about Australian bank accounts in Australia? Share your ideas in the comments section.