Government Guarantee on deposits

Bank with peace of mind

Australia is fortunate to have one of the safest, most stable and highly regulated banking sectors in the world. Australian banks are among the best funded and most liquid and are prudently managed using international best practice. 

The stability of the banking sector and its ability to withstand a variety of economic stresses is constantly monitored by a range of bodies, including the Reserve Bank of Australia and the Australian Prudential Regulation Authority. 

The Federal Government's Deposit Guarantee

The Financial Claims Scheme (FCS) 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 FCS, 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 FCS can only come into effect if it is activated by the Australian Government when an institution fails. Once activated, the FCS will be administered by the Australian Prudential Regulation Authority (APRA). In an FCS scenario, APRA would aim to pay the majority of customers their protected deposits under the Scheme within seven calendar days.

The FCS limit of $250 000 applies to the sum of an account holder’s deposits under the one banking license. Therefore, all deposits held by an account holder with a single banking institution must be added together towards the $250 000 FCS limit, and this includes accounts with any other banking businesses that the licenced banking institution may operate under a different trading name. For BOQ Specialist, this includes accounts held with BOQ Specialist, BOQ and Virgin Money (Australia).

The guarantee only applies to Australian Dollar denominated deposits. Foreign currency accounts are not covered under the Government  Guarantee. For more information about the Government Guarantee and the Financial Claims Scheme, please refer to www.fcs.gov.au or call 1300 55 88 49.

What types of deposit accounts are covered by the FCS?

The Financial Claims Scheme applies to a wide range of Australian Dollar deposits, including:

Want to know more?

  1300 160 160
 

Enquire now