Mr Burns, you may want to investigate this further. My understanding is the big 4 banks are guaranteed up to $20B each, that does not cover all or even the majority of their deposits.
You will more likely see if the bank was to fail, get 50 cents back in the dollar.
Payouts of deposits covered under the FCS are initially financed by the Government through a standing appropriation of $20 billion per failed ADI
This is all I know....
https://www.moneysmart.gov.au/managing-your-money/banking
Government guarantee on deposits
The Australian Government has guaranteed deposits up to $250,000 in Authorised Deposit-taking Institutions (ADIs) such as your bank,
building society or
credit union. This means that this money is guaranteed if anything happens to the ADI.
The cap applies per person and per ADI. So if you have $250,000 with one ADI and $250,000 with another, then both of your deposits are guaranteed. If you have more than $250,000 with one ADI then only up to $250,000 is guaranteed.
Some ADIs operate multiple brands or may offer deposit accounts under more than one brand name. However, they are still part of the same ADI. The guarantee covers deposits per ADI, not per brand name. For example, if you have multiple deposit accounts with brands that are owned by the same ADI, the guarantee will only apply to $250,000 of these funds in total. If this concerns you, make sure you know who the ADI is that you bank with.
In the case of joint accounts, each account holder is entitled to an individual guarantee up to $250,000.
The guarantee applies to all ADIs incorporated in Australia, including Australian-owned banks, foreign subsidiary banks, building societies and credit unions. To check which banks are covered by the guarantee see the
Australian Prudential Regulation Authority's list of ADIs.
The types of accounts covered by the guarantee are: savings accounts; call accounts; term deposits; current accounts; cheque accounts; debit card accounts; transaction accounts; personal basic accounts; cash management accounts; farm management deposits; pensioner deeming accounts; mortgage offset accounts, either 100 per cent or partial offset that are separate deposit accounts; trustee accounts; and retirement savings accounts.
For more details see
APRA's Financial Claims Scheme website.
If you see this seal on letters or brochures relating to your account, you'll know that your account is covered by the guarantee.
This is an example only - you may see it in other colours. Your financial institution does not have to use or display the seal. If it chooses not to display it, that doesn't mean your account is not guaranteed.
See the ASIC website for the
rules on how the seal can be used.
If you are not sure whether your account is guaranteed, ask your financial institution.