The $250,000 Government Guarantee: Your Complete Protection Guide

What Is the Government Guarantee?

The Australian Government guarantees deposits up to $250,000 per person, per authorised deposit-taking institution (ADI). This protection is provided through the Financial Claims Scheme (FCS), administered by APRA.

How the Protection Works

The guarantee covers:

• Savings accounts - All standard deposit accounts
• Term deposits - Fixed-term investments with banks
• Transaction accounts - Everyday banking accounts
• Pensioner deeming accounts - Retirement-focused accounts

Understanding the $250,000 Limit

Key points about the coverage limit:

• Per person: Each individual is covered up to $250,000
• Per institution: The limit applies separately to each ADI
• Joint accounts: Each holder receives their proportional share of protection
• Multiple accounts: All accounts at the same ADI are combined

Which Institutions Are Covered?

Only APRA-authorised institutions qualify for the guarantee:

• All major Australian banks
• Credit unions and building societies
• Authorised foreign bank branches
• Digital banks with APRA authorisation

What Happens If a Bank Fails?

In the unlikely event of an ADI failure:

1. APRA activates the Financial Claims Scheme
2. Eligible depositors are identified automatically
3. Payments are made within 7 days in most cases
4. No application needed - the process is automatic

Maximising Your Protection

For deposits exceeding $250,000, consider spreading funds across multiple ADIs. Each institution provides separate coverage, allowing you to protect larger sums.

The government guarantee means your savings are among the safest investments available in Australia.