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Currently, I'm putting all my savings into one bank institution, but spread into several accounts.

Are there any security risks in this approach? It is convenient for me as all my money can be managed under one internet login, but should I consider getting a new account at another bank institution to further spread my money?

Additional details

  • Location - Australia
  • Current bank - National Australia Bank
  • Amount - $10000 - $16000 but hoping to grow to 6 digits in the next 3 years. (I've just started working a few months ago)
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  • How much money? What country? What bank?
    – Guy Sirton
    Commented Oct 13, 2014 at 1:40
  • @GuySirton, I updated the question. Hope it helps.
    – Zaenille
    Commented Oct 13, 2014 at 1:44
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    As long as the amounts are small I definitely wouldn't worry. Bank deposits are insured in Australia up to $250k and typically if the money has been lost in some fraudulent activity it's the bank's problem not yours. As long as you're dealing with a reputable/solid institution you'll be fine...
    – Guy Sirton
    Commented Oct 13, 2014 at 1:54
  • @GuySirton, if you would put that up as an answer it would be great, so that I could set it as the answer. Cheers
    – Zaenille
    Commented Oct 13, 2014 at 2:01

1 Answer 1

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For small amounts I wouldn't be too concerned.

There are two factors I can think of:

  1. The bank going out of business e.g. due to a run on the bank. In most places there is government insurance to cover these situations. In Australia it appears that up to $250k per customer per bank is insured.
  2. Loss of your money due to fraud/illegal access to your funds. Typically banks would be responsible for that kind of loss since it is their responsiblity to prevent unauthorized access to your funds. Check terms of service, contract and local laws to be sure.

For relatively small amounts and when dealing with reputable banking institutions there should be little concern of banking with a single bank. It's what most people do.

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  • "it is their responsiblity to prevent unauthorized access to your funds" Make sure to check the bank's terms of service regarding securing passwords, physical access tokens, etc.
    – user
    Commented Oct 13, 2014 at 8:56
  • @MichaelKjörling It's probably more complicated given that this is probably also regulated by local laws but I've added a note about this.
    – Guy Sirton
    Commented Oct 13, 2014 at 22:35

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