The Federal Government introduced the Financial Claims Scheme (FCS) on 12 October 2008 to guarantee deposits for all Authorised Deposit-taking Institutions (ADIs) including Australian banks, building societies, credit unions and Australian subsidiaries of foreign owned banks.
Some Australian branches of foreign banks are also covered by the guarantee.
Deposits with Illawarra Credit Union are protected under the terms of the Financial Claims Scheme, together with the depositor protection provided by the Banking Act.
The Government and Australia’s banking regulator, the Australian Prudential and Regulation Authority (APRA), have highlighted the strength of Australia’s banking system in terms of capital protection and liquidity support.
On Sunday 11 September 2011 the Government amended the cap of deposits guaranteed under the scheme to $250,000 from 1 February 2012 with transitional arrangements for deposits in place at 10th September 2011.
How do the transitional arrangements work?
|Type of Deposit||Date deposit existed at||Cap applied|
|Term Deposit||10 September 2011||$1 million (until the 31 December 2012 or the maturity of the term deposit)|
|Term Deposit||10 September 2011 matures before 1 February 2012||Up to maturity - $1 million (If rolled over, up to $1 million then from 1 February 2012 - $250,000)|
|Term Deposit||10 September 2011 matures between 1 February 2012 and 31 December 2012||Up to maturity - $1 million (If rolled over post 1 February 2012 - $250,000 from rollover date)|
|All Deposit||After 10 September 2011||Up to 1 February 2012 - $1 million - (From 1 February 2012 - $250,000)|
If you have any questions, please contact us.