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Deposit guarantee and offset accounts

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The Australian Government guarantees deposits up to $250,000 in authorised deposit-taking institutions (ADIs) such as your bank, building society or credit union. This includes mortgage offset accounts (either 100% or partial offset) that are separate deposit accounts held with an ADI. Some non-bank lenders offer home loans with offset accounts - as long as the offset is a separate account held with an ADI, it is also covered. Other accounts that are covered include, among others, savings accounts, transaction accounts, term deposits and pensioner deeming accounts. Redraw facilities are not covered.

The cap applies per person and per ADI. So if you have $250,000 with one ADI and $250,000 with another, both deposits are guaranteed. If you have more than $250,000 with one ADI, then only up to $250,000 is guaranteed. If you have multiple deposit accounts with brands that are owned by the same ADI, the guarantee will only apply to $250,000 in total. In the case of joint accounts, each account holder is entitled to an individual guarantee up to $250,000 each.

See APRA's list of ADIs at apra.gov.au. For more information on banking and bank accounts, visit moneysmart.gov.au.

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Michael Saadat is senior executive leader deposit takers, credit & insurers, ASIC

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