No, you generally don't lose your money if an insured bank collapses, thanks to government-backed deposit insurance (like the FDIC in the U.S. or FCS in Australia) that protects deposits up to a certain limit, typically $250,000 per depositor, per bank, per ownership category, ensuring funds are returned or transferred smoothly. While large sums above the limit might take longer to recover, most customers at failed FDIC-insured banks haven't lost any insured money since the 1930s.
Bottom line. For the most part, if you keep your money at an institution that's FDIC-insured, your money is safe — at least up to $250,000 in accounts at the failing institution. You're guaranteed that $250,000, and if the bank is acquired, even amounts over the limit may be smoothly transferred to the new bank.
It's not fully safe to keep $500,000 in one bank because standard government deposit insurance (like the FDIC in the U.S. or FCS in Australia) typically covers only up to $250,000 per depositor, per institution, per ownership category; the excess over $250,000 is unprotected if the bank fails, so you should spread your funds across different banks or use different ownership structures (like joint or business accounts) to ensure full coverage, or explore cash management accounts.
They're deposit accounts – and they're largely protected by the government. If your bank goes under, the Australian Government's Financial Claims Scheme guarantees deposits of up to $250,000 per customer.
In the case of a claim against a failed bank, building society or credit union, the FSCS will often make payments direct to the account holder(s), by electronic payment or cheque. These payments will typically be made within seven days of the firm failing, although complex claims may take longer.
Yes, your money is safe in the bank as long as it's in an FDIC-insured institution, and we recommend keeping it there in 2026. See our list of the safest banks in the U.S.
And with the backing of FDIC insurance, your savings are protected up to $250,000 per bank, per depositor in the event of bank failure. This week: Open a high-yield savings account and automate $50 a week into it. That first $2,000 might matter more than you think.
National Australia Bank (NAB) has ranked first as the safest bank in Australasia and number 16 in the world, the Rankings of the World's 50 Safest Banks report from Global Finance has found.
THE financial collapse of South Australia's State Bank in 1991 was primarily caused by the bank turning its back on its community-based roots rather than poor handling by the then Labor State Government, according to the most comprehensive book on the State Bank disaster ever written.
Yes, Australians are facing significant financial struggles in 2025, with high cost of living, rising debt, and widespread financial insecurity, particularly impacting young people, renters, and lower-income families, leading many to feel worse off and struggle to meet basic expenses despite some economic indicators improving. Key issues include affordability of essentials (food, housing), increased use of Buy Now Pay Later (BNPL), and a general sentiment that financial health isn't improving, say reports from Monash University, SBS News, The Salvation Army Australia, The West Australian, Agile Market Intelligence, ASIC, The Guardian, Broker Daily, and Australian Broadcasting Corporation.
Yes, it is possible to retire comfortably on $500k. This amount allows an annual withdrawal of $30,000 or less from age 60 to 85, covering 25 years. If $20,000 a year, or $1,667 a month, meets your lifestyle needs, then $500k is enough for your retirement.
Low Interest Rate
Many accounts pay an annual interest rate that rounds to 0%. Meanwhile, some high-yield savings accounts and money market mutual funds pay over 4% interest a year. An extra 4% on $1 million is $40,000 a year!
Throughout its history, the FDIC has provided insured depositors with prompt access to their funds whenever an FDIC-insured bank or savings association has failed and no insured depositor has ever lost any funds.
There are up to 16 bank holidays in January 2026. Here is the full list of bank holidays next month. 1 January – Banks will be closed in Tamil Nadu, West Bengal, Arunachal Pradesh, Sikkim, Tripura, Manipur, Meghalaya, Mizoram and Nagaland due to New Year's Day / Gaan-Ngai.
While many experts warned of a recession for Australia in 2025 due to high inflation and interest rates, the economy largely avoided a major downturn, showing resilience with positive, albeit slower, GDP growth, low unemployment, and some signs of recovery by late 2025, though risks remained, particularly concerning household spending and global trade tensions. Forecasts from the Reserve Bank of Australia (RBA) and economists indicated a "slow grind" or modest improvement rather than a sharp crash, with some analysts predicting a potential for recession into 2026, but overall, Australia navigated the challenges better than initially feared.
If you have over $250k in an Australian bank, you should spread it across different Authorised Deposit-taking Institutions (ADIs) like banks, building societies, or credit unions to ensure all funds are protected under the Financial Claims Scheme (FCS), as the guarantee only covers up to $250,000 per person, per ADI, and be mindful that some large banks own smaller ones (e.g., NAB & ubank). Beyond basic protection, consider investing the excess for growth (like shares, property, or managed funds), paying down high-interest debt, boosting superannuation, or seeking financial advice for long-term wealth management.
Yes, Australia is facing significant financial challenges, with many households struggling with the cost-of-living crisis, high interest rates, slowing economic growth, and rising government debt, leading to declining living standards despite the economy not being in official recession. Key issues include soaring housing and essential costs, stagnant real wages, weakening productivity, and increasing state and federal debt levels, creating a "gentle decline" where many feel financially squeezed.
You'll earn roughly $330 to $420+ per month on $100,000, depending on the interest rate (e.g., a 4% to 5% Annual Percentage Yield (APY)), with higher rates earning more, and the amount increasing slightly each month due to compound interest. For example, at a 4.2% APY, you'd get about $4,200 yearly ($350/month), while at 5%, it's $5,000 annually ($416.67/month), with actual earnings varying by bank, account type (savings, CD, bond), and compounding frequency.
Getting a guaranteed 7% interest rate on savings in Australia is very difficult right now, with top savings accounts typically offering up to around 5% with bonus conditions (like Rabobank, ING, Bank Australia), while 7% rates are usually found in higher-risk investments like stocks or property, or as limited-time promotional regular savings accounts in the UK (not Australia), so you'll need to research bonus savings accounts, term deposits, investment options, or potentially P2P lending for higher returns, keeping risk in mind.
To earn $1,000 a month, you generally need an investment portfolio of $240,000 if targeting a 5% annual yield, but this varies significantly by investment type, requiring $100k-$200k for high-yield stocks, $250k-$400k for diversified stocks, or $100k-$150k for high-yield ETFs, all dependent on the portfolio's yield and your risk tolerance.
If you invest $100 a month for 30 years, you could have anywhere from around $97,000 to over $240,000, depending on the average annual rate of return, with higher returns (like 10% vs. 6%) leading to significantly more wealth due to the power of compound interest, with total contributions reaching $36,000. For example, a 6% return yields about $98,000, while a 10% average return (closer to historical stock market averages) could grow to over $240,000 over three decades.
Despite a muted 2025, most global brokerages expect 2026 to be positive, with Sensex targets largely clustered between 90,000 and 1,07,000. Morgan Stanley and Jefferies remain optimistic, driven by expectations of earnings recovery, Fed rate cuts, and easing foreign outflows.
Risks of Keeping Cash at Home