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.

Accounts covered by the scheme

1. Savings Accounts 
2. Term deposits 
3. Cheque accounts 
4. Debit card accounts
5. Transaction accounts 
6. Retirement savings accounts 
7. Mortgage offset account (either 100 per cent or partial offset) that are separate deposit accounts 

How is the FCS activated

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.

How are joint accounts treated under the FCS

For joint accounts deposits are shared equally, between the account holders. Each joint account holder’s share is added to any other eligible deposits they hold in their name at the same banking institution. Each account holder has a total FCS limit of $250,000.

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 licence. 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 licensed banking institution may operate under a different trading name.

Unity Bank Limited, an ADI, operates the following brands:

• Unity Bank
• Reliance Bank

For the purposes of FCS, Unity Bank Limited would aggregate accounts under these brands to determine the FCS entitlement when generating the Single Customer View (SCV).

Where can I get further information on the FCS?

Information on the FCS is available on the FCS website