Are my deposits safe? The $250,000 guarantee explained

Australia's Financial Claims Scheme (FCS) protects your deposits if a bank fails.

What's covered

Up to $250,000 per account holder, per authorised deposit-taking institution (ADI). That includes term deposits, savings and transaction accounts at banks, building societies and credit unions.

The 'per institution' detail

The $250,000 cap applies per institution, not per account. If you hold $400,000 at one bank across several accounts, only $250,000 is guaranteed. Spreading larger sums across separate ADIs increases your covered total.

Note: some brands share a single banking licence. Two 'different' banks under the same ADI share one $250,000 cap — worth checking for large balances.

The takeaway

For most savers, deposits are among the safest places to hold money. We flag which offers are FCS-covered on every offer page.