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Compare government guaranteed term deposits

Some term deposits are backed by a government guarantee, ensuring the security of the deposit. Find and compare government guaranteed term deposits, and calculate interest rates, returns, fees and more to find the term deposit suited for your needs.

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Mark Bristow

Updated on

29 Oct, 2025

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Are term deposits covered by a government guarantee?

Term deposits offer a range of benefits. As well as letting you earn interest on your deposit at a fixed rate, so you can calculate your returns in advance, they are covered by a government guarantee.

The Australian government’s Financial Claims Scheme covers term deposits opened with authorised deposit-taking institutions (ADIs). This guarantee ensures that your money will be safe and your savings secure, even if the bank or financial institution were to go out of business.

What are the benefits of being covered by the government guarantee?

The most significant benefit of the government guarantee is stability. The government guarantee was first introduced in response to the 2008 Global Financial Crisis (GFC) with the goal of improving Australia’s financial stability.

Because financial institutions must fulfill strict requirements to operate as a licensed ADI, it’s unlikely that your deposit will ever need to be covered by the government guarantee scheme. That said, the guarantee can offer peace of mind to customers and make sure they feel secure in trusting financial institutions with their savings.

What are the limits of the government guarantee?

It’s important to keep in mind that the government guarantee is capped at $250,000 per person per institution. This means that if you have deposits of more than a quarter of a million dollars in the bank, you may not get all of this money back from the government guarantee if the bank were to go out of business.

To help ensure your savings are guaranteed, you could consider dividing your wealth between different banks so that each ADI holds a maximum of $250,000. Keep in mind that some ADIs operate under different trading names – be sure to check that you aren’t accidentally staying with the same ADI.

Are other types of accounts covered by the government guarantee?

The government guarantee scheme covers more than just term deposits. The scheme also covers savings accounts, transaction accounts and trustee accounts, just to name a few.

Essentially, any money you deposit with a licensed ADI is covered by the guarantee. This means the $250,000 cap applies across all of your deposits with an ADI as well – to guarantee higher balances, it may be worth diversifying your deposits between different ADIs.

How do I know if my term deposit is covered by a government guarantee?

Your term deposits, and any other money you deposit with a bank or similar financial institution, should be automatically covered by the government guarantee if the bank is a licensed ADI.

For a bank, credit union, or fintech to accept deposits in Australia, it must get an ADI license. To be certain if your money will be guaranteed, you can always search for your financial institution on APRA’s list of ADIs.

How long will the government guarantee my deposit?

Your account is covered by the government guarantee for as long as your deposit remains in your account. Whether you’ve opened a term deposit for six months or six years, the government guarantee will apply throughout your entire term.

Mark Bristow

Personal Finance Editor

Mark Bristow is RateCity's Home & Personal Finances Editor, and an experienced analyst, researcher, and producer. While primarily focused on Australian mortgage and home loan expertise, he has experience across energy, home and travel insurances. Mark has been a journalist and writer in the financial space for over ten years, previously researching and writing commercial real estate at CoreLogic. In the years since, Mark has worked for the Winning Group, Expedia, and has seen articles published at Lifehacker and Business Insider. Mark has also completed RG 146 (Tier 1), making him compliant to provide general advice for general insurance products like car, home, travel and health insurance, as well as giving him knowledge of investment options such as shares, derivatives, futures, managed investments, currencies and commodities.

This article was reviewed by External Comms Lead Eden Radford before it was published as part of RateCity's Fact Check process.

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

Are term deposits covered by a government guarantee?

How do I know if my term deposit is covered by a government guarantee?

Your term deposits, and any other money you deposit with a bank or similar financial institution, should be automatically covered by the government guarantee if the bank is a licensed ADI.

Compare government guaranteed term deposits

Providers we compare

On this page

Are term deposits covered by a government guarantee?

What are the benefits of being covered by the government guarantee?

What are the limits of the government guarantee?

Are other types of accounts covered by the government guarantee?

How do I know if my term deposit is covered by a government guarantee?

How long will the government guarantee my deposit?

Share this page

Latest term deposits articles

What happens when a term deposit matures?

Is a term deposit an asset?

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Alternative investments to term deposits

Are term deposit accounts subject to capital gains tax?

Did you find this page helpful?

On this page

Are term deposits covered by a government guarantee?

What are the benefits of being covered by the government guarantee?

What are the limits of the government guarantee?

Are other types of accounts covered by the government guarantee?

How do I know if my term deposit is covered by a government guarantee?

How long will the government guarantee my deposit?

Share this page

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