Government Deposit Guarantee

Customer Information: Government Guarantee for Deposits

Updated March 2009

Safety of Deposits

BankSA, part of the Westpac group, is one of only 12 banks globally with a credit rating of “AA” or higher.

Our recent transformational merger with Westpac, in December 2008, created a larger, more diverse and even stronger financial services company – well positioned to meet the challenges of the current global environment. We are well established, prudentially well managed and remain well capitalised.

BankSA itself is in a sound position with very good credit quality and no exposures to either domestic or US subprime lending.

Measures that give us this confidence include:

• vigorous capital requirements such as the requirement to hold assets of a value greater than the total amount of our deposit liabilities;
• policies which ensure satisfactory liquidity management;
• the holding of good credit quality loans;
• controlled exposures; and
• sound risk management. 

Adherence to these measures is overseen by the Australian Prudential Regulation Authority (APRA), which provides banks with their banking licences and ensures stringent prudential standards are maintained.

Government Guarantee for Deposits

The Australian Government  has guaranteed all deposits up to a threshold of $1 million. Deposits and wholesale funding over $1 million will only be guaranteed if the relevant Government Guarantee fee is paid.

What is Covered Under the Guarantee

The Government has advised the following types of Deposits are currently covered under the Deposit Guarantee:

• Separate mortgage offset accounts (with either 100% or partial offset) are covered. However, home loan accounts with a redraw facility are not included
• All standard deposit accounts (including Transaction accounts, online accounts, DIY deposit accounts and Term Deposits). However, Market linked investments such as Shares and Managed funds and life insurance are not included under the Government’s programme because they are not considered by the Government to be eligible accounts.

Amounts greater than $1 million are only covered if a Government Guarantee fee is paid.

To find out more about the Government Deposit Guarantee call 1300 279 245, from 7.30am – 7.30pm, Monday to Saturday, or visit your closest BankSA Branch or talk to your Relationship Manager.

View the Terms and Conditions Applying to your Government Deposit Guarantee