The Financial Claims Scheme applies to the following deposit accounts:
The Financial Claims Scheme does not apply to the following accounts:
Under the Financial Claims Scheme, an account holder is defined as an individual, body corporate, body politic, partnership, any other unincorporated association or body of persons, trust, superannuation fund (including a self-managed superannuation fund) and/or an approved deposit fund.
The Financial Claims Scheme can only come into effect if it is activated by the Australian Government when an institution fails. Once activated, the Financial Claims Scheme will be administered by APRA. In a Financial Claims Scheme scenario, APRA would aim to pay the majority of customers their protected deposits under the Scheme within seven calendar days.
So while the Financial Claims Scheme is unlikely to be required, it strengthens public confidence in the safety, stability and security of the Australian banking system.
If you're an eligible account holder and your savings are held with Heritage and People's Choice Limited (whether under the trading name "Heritage Bank", the trading name "People's Choice Credit Union") the combined savings amount is guaranteed up to a limit of $250,000 as part of the Financial Claims Scheme. The Scheme ensures that depositors are guaranteed repayment of their savings in the extremely unlikely event that any banking institution fails.
Under the Scheme, eligible deposits are protected up to a limit of $250,000 for each account holder per authorised deposit taking institution. Heritage and People's Choice Limited is a single authorised deposit taking institution. This means that all deposits you hold in one or more Heritage Bank accounts and one or more People's Choice Credit Union accounts must be added together towards the $250,000 limit.
If you have less than $250,000 in combined deposits across both brands, this will not have any impact on your position in respect of the Financial Claims Scheme. From 1 March 2023, any deposit amount you hold with Heritage and People's Choice Limited that is greater than $250,000, whether under the Heritage Bank brand or People’s Choice brand, will not be guaranteed by the Federal Government’s Financial Claims Scheme.
Use this deposit checker to check that your deposits are covered. If you have deposits at other financial institutions, check the financial institution is listed as an authorised deposit taking institution (ADI).
More information on the Scheme is available on the Financial Claims Scheme website – www.fcs.gov.au
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