Financial Claims Scheme
The Financial Claims Scheme protects depositors through the provision of a guarantee on deposits (up to a cap) held in Authorised Deposit-taking Institutions (ADIs) in Australia and allows quick access to their deposits if an ADI becomes insolvent. As such please note the following information:
- As Rural Bank is a part of the Bendigo & Adelaide Bank Group, deposits with Rural Bank are covered by the Financial Claims Scheme;
- You may be entitled to a payment under the Financial Claims Scheme in the event of Bendigo & Adelaide Bank becoming insolvent;
- Accessibility to the Financial Claims Scheme is subject to eligibility criteria; and
- Information about the Financial Claims Scheme can be found at the APRA website at www.apra.gov.au/financial-claims-scheme and the APRA Hotline on 1300 558 849.
The following has been provided to inform you on the Financial Claims Scheme.
1. What is the Financial Claims Scheme?
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.
2. How is the FCS limit applied?
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.
3. Where can I get further information on the FCS?
Further information on the FCS is available on the FCS website - www.fcs.gov.au.