Government Guarantee

The cap applies per person and per Authorised Deposit-taking Institution. So for example if you have $250,000 with Orange Credit Union and $250,000 with another bank or credit union, then both of your deposits are guaranteed. In the case of joint accounts, each account holder is entitled to an individual guarantee up to $250,000.

At Orange Credit Union, we are prudentially regulated by the Australian Prudential Regulatory Authority (APRA) just the same as the big banks. Orange Credit Union has constantly developed over the last 50 years, so you can feel secure that your deposits are protected with the Government Deposit Guarantee applying to our:

• Savings Accounts
• Investment Accounts

Does the guarantee apply to foreign currency?

The guarantee applies to all ADIs incorporated in Australia, including Australian-owned banks, foreign subsidiary banks, building societies and credit unions. 

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.

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 licenced banking institution may operate under a different trading name.

Where can I find out more information?

For more details, visit ASIC’s MoneySmart website or visit Financial Claims Scheme.