What is the Financial Claims Scheme (or Guaranteed Deposits)?

Jasmine Shillington Updated by Jasmine Shillington

The Financial Claims Scheme (also known as the Government Guaranteed Deposits) is an Australian Government scheme that provides protection and quick access to deposits in banks, building societies and credit unions in the unlikely event that one of these financial institutions fails.

Under the Financial Claims Scheme, certain deposits are protected up to a limit of $250,000 for each account holder at any bank, building society, credit union or other authorised deposit-taking institution (ADI) that is incorporated in Australia and authorised by the Australian Prudential Regulation Authority (APRA). The Financial Claims Scheme can only come into effect if it is activated by the Australian Government when an institution fails. Once activated, it will be administered by APRA. In this scenario, APRA would aim to pay the majority of customers their protected deposits under the Scheme within seven calendar days.

The following Australian Military Bank and RSL Money accounts are covered under the Financial Claims Scheme:

  • Everyday and Savings accounts: Access, Military Rewards, 100% Mortgage Offset, Recruit Salary Saver, Military Kids, Pension Access, Military Clubs, Online Saver, DIY Super Saver, Christmas Club, Star Saver and Cash Management accounts as well RSL Money Pension Access and Sub-branch accounts. 
  • Term deposits: Australian Military Bank and RSL Money term deposits.
  • Retirement Savings Accounts: Capital Guaranteed Super and Capital Guaranteed Pension.

The Financial Claims Scheme limit of $250,000 applies to the sum of an account holder's deposits under the one banking license including any accounts held under a different trading name (i.e. RSL Money). In the case of joint accounts, each account holder's share of the joint account will be added to other deposits held in their name and the cap will be applied to the aggregated amount for each account holder. Each account holder is entitled to an individual guarantee up to the cap of $250,000.

For more information visit www.fcs.gov.au.

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