Tasmania is a weird, beautiful place. We have our own beer, our own weather patterns, and, uniquely, our own bank. If you aren't from the Apple Isle, you’ve probably never heard of Bank of us. Even if you live in Hobart or Launceston, you might just see the orange branding and assume it’s another generic credit union.
It isn't.
Actually, it's the only customer-owned bank left that is 100% Tasmanian. That matters more than you might think in an era where the "Big Four" are closing regional branches faster than you can say "digital transformation." People are tired of being a number. They’re tired of profits heading to shareholders in Sydney or Melbourne while local service gets gutted. Bank of us is basically the antithesis of that corporate machine.
What is Bank of us, exactly?
Let’s get the history straight because it’s actually kind of interesting. They didn't just pop up overnight. This institution started way back in 1970 as the Launceston City Council Employees Credit Union. Over the decades, it swallowed up other local credit unions—places like the Elizabeth Street Credit Union and the Heritage Building Society.
In 2017, they rebranded. They ditched the "B&E" name (which stood for Bass & Equitable) and became Bank of us.
Why the name change? Honestly, "B&E" sounds a bit like breaking and entering if you’re not careful. The new name was designed to signal that they are a "bank for the rest of us." They are a mutual bank. This is a crucial distinction. In a standard bank, you have shareholders who want dividends. In a mutual bank like this one, the customers are the owners. Every person with an account has a say.
The Reality of Customer Ownership in 2026
You’ve probably heard the marketing fluff about "putting people first." Every company says it. But with Bank of us, the structure actually forces it. Because there are no external shareholders to please, the "profit" they make gets funneled back into the business. This usually manifests in two ways: better interest rates or lower fees.
Or, as is often the case in Tassie, keeping a physical branch open when everyone else is leaving town.
✨ Don't miss: Pacific Plus International Inc: Why This Food Importer is a Secret Weapon for Restaurants
They have retail stores in places like Burnie, Devonport, Hobart, Launceston, Rosny, and Ulverstone. While the rest of the banking world is forcing everyone onto glitchy apps, these guys still let you walk in and talk to a human being named Dave or Sarah who actually knows where the local bakery is. It’s old school. But in a good way.
How they stack up on mortgages
If you’re looking at home loans, you have to be cynical. You should be. Bank of us often competes aggressively on their "FlexiChoice" products. They frequently show up on comparison sites like Canstar or RateCity with high ratings, not because they are the absolute cheapest in the entire country—sometimes a random online-only lender will beat them by 0.05%—but because their fee structure is transparent.
They don't have those "sneaky" monthly service fees that eat your soul.
One thing people get wrong is thinking a small bank can't handle complex loans. They can. They do construction loans, offset accounts, and even support the Australian Government's Home Guarantee Scheme. They were one of the early adopters among the smaller players to help first-home buyers get in with a 5% deposit without paying Lenders Mortgage Insurance (LMI). That’s a massive leg up for a young couple in Glenorchy trying to outbid investors.
The Digital Experience: Is it Actually Any Good?
Look, I’ll be real with you. Five years ago, banking with a small local player felt like using a website from 1998. It was clunky.
Things have changed. Bank of us uses the same underlying technology "rails" as many larger institutions. Their mobile app supports Apple Pay, Google Pay, and Osko (real-time payments). If you’re worried about whether you can pay for your coffee with your watch, the answer is yes. You aren't sacrificing modern convenience just to support a local business.
However, don't expect a 24/7 AI chatbot that can solve your existential crises. Their support is human-centric. If you call them, you’re calling Tasmania. You aren't being routed to a call center in a different time zone where the operator has never heard of the Bass Highway.
🔗 Read more: AOL CEO Tim Armstrong: What Most People Get Wrong About the Comeback King
Is My Money Safe?
This is the big question. "If the bank is small, what happens if the economy tanks?"
It’s a fair concern, but it's based on a misunderstanding of how Australian banking works. Bank of us is an ADI—an Authorized Deposit-taking Institution. This means they are regulated by APRA, the same heavy-hitters that watch over CBA and Westpac.
More importantly, they are covered by the Financial Claims Scheme. This is the government guarantee. If—in some wild, doomsday scenario—the bank went under, the Federal Government guarantees deposits up to $250,000 per person. Your savings are just as safe there as they are in a vault at the Reserve Bank.
What Most People Get Wrong About Mutuals
People think "local" means "limited."
I’ve talked to people who thought they couldn't use their Bank of us card while traveling in Europe. That’s nonsense. They are part of the global Visa network. You can use your card in Paris, Texas, or Paris, France.
Another misconception is that they only care about retirees. While they definitely have a loyal older fan base because of their branch presence, their recent focus has been heavily on the "squeezed middle"—families trying to balance a mortgage with the rising cost of living. They tend to be more flexible with credit assessments than the "computer says no" algorithms at the massive banks.
A Note on Community Impact
Money leaves Tasmania constantly. Most of our retail spend goes to big national chains. Most of our power bills go to the state, but our banking profits usually head across the Strait.
💡 You might also like: Wall Street Lays an Egg: The Truth About the Most Famous Headline in History
Bank of us runs a "Community Grants" program. We’re talking about real money going to local NFP groups, neighborhood houses, and sports clubs. In 2024 and 2025, they ramped this up significantly. When you bank with them, a portion of the margin on your car loan is literally buying jerseys for a junior footy team in Wynyard. It’s a closed-loop economy.
The Downsides (Because Nothing is Perfect)
I’m not here to sell you a fairytale. There are trade-offs.
- Physical Footprint: If you move to Perth or Brisbane, you’re stuck with digital-only banking. They don't have branches on the mainland.
- Product Variety: They don't have the hyper-niche investment products or complex institutional trading platforms that a massive global bank offers. If you’re a high-frequency day trader looking for an integrated margin lending account, this isn't your vibe.
- Atm Access: While you can use almost any major bank ATM for free nowadays (thanks to industry changes), finding a "Bank of us" branded machine outside of Tassie is impossible.
How to Make the Switch
If you’re fed up with your current bank, switching isn't the nightmare it used to be. Australia has "Account Switching" rules that make it easier.
- Open the account first. Don't close your old one yet. Grab a "SmartSave" or a basic transaction account.
- Look at your direct debits. This is where people trip up. Netflix, gym, insurance—make a list.
- Use the "Switching Request" form. Bank of us can actually help pull a list of your regular payments from your old bank.
- Move your salary. Give your payroll person the new BSB (it’s 632 001) and account number.
- Test it. Keep $100 in your old account for a month just in case you forgot a stray bill.
Actionable Insights for Your Wallet
If you’re looking to optimize your setup with Bank of us, start by checking their current term deposit rates. Often, because they need to attract local capital to fund their home loans, their "special" 6-month or 12-month rates are significantly higher than the big banks' standard offerings.
Also, look into their "Personal Loan" options if you're consolidating debt. They tend to have a more "common sense" approach to lending if you have a solid job but a less-than-perfect history.
Honestly, the biggest value isn't a specific product. It’s the fact that you can pick up the phone and talk to someone who understands the Tasmanian economy. In a world of automation, that’s becoming a luxury.