[jpgvm]

Best spot for actual emergency fund if you have a mortgage is in said mortgage redraw account. Most mortgages these days have free online redraw so it offsets the interest you are paying while being completely safe with zero risk and only your local currency volatility.

[gonzo41]

Check your loan conditions, your bank may have rights to money in excess of scheduled payments. Unless your talking about a specific offset account as opposed to the actual loan account.

Not a CPA but got told this advice with regard to larger savings. If the bank has trouble it can snatch up your redraw. YMMV

[jpgvm]

If my bank is having trouble (by far the largest in my country) I'm beyond fucked and I don't think it will matter much how much of my paid-in-advance funds they can take.

It's sort of like worrying about how living in an apartment building I will probably be incinerated by a nuclear blast hitting my city whereas I could live long enough to witness the end all life if I had a house a few suburbs out. If nuke hits Melbourne it's all over red rover, if Commbank goes tits up it's basically the same thing from a finance POV.

[reitzensteinm]

You're probably right you don't have to worry too much about the bank going bankrupt.

But if the primary purpose of the emergency fund is to smooth things out if you lose your job, that's literally the moment the bank will get cold feet about lending you money it's not contractually obligated to.

If the economic trouble causing your job loss coincides with a drop in house prices and all of a sudden you're underwater, it's hard to imagine a clause like that not being triggered, should it exist.