In these uncertain times, it’s only natural to be concerned about your investments and make sure your funds are safe. We’re proud to reassure you that all People’s Choice deposit, savings and transaction accounts are covered by the Australian Government’s Deposit Guarantee, which is part of the Financial Claims Scheme.
What is the Government Deposit Guarantee?
The Government Deposit Guarantee refers to the Financial Claims Scheme.
What is the Financial Claims Scheme (FCS)?
The Financial Claims Scheme is an Australian Government scheme that provides protection up to $250,000 for each account holder at Australian financial institutions (known as authorised deposit-taking institutions or ADIs), in the unlikely event that one of these financial institutions fails. People’s Choice is one of the ADIs covered by the scheme. You can find the list of all ADIs that are covered by the FCS here.
The FCS also covers claims of up to $5,000 from policyholders and claimants against general insurers in Australia, as well as providing protection for eligible claimants for claims above that. A list of all general insurers covered under the FCS can be found here.
The FCS is designed to protect depositors and claimants of general insurers in Australia from potential loss in the event of the failure of an institution, provide depositors with fast access to their protected deposits, and to support the stability of the Australian financial system.
How much protection is provided?
The protection limit of $250,000 applies to the total of all deposits one account holder has with a single financial institution. If you’ve got multiple deposits with the same institution, they must be added together. This includes business accounts and other deposit accounts if held in the name of the same individual or entity. For joint accounts, the balance will be split equally between all account holders.
When does the FCS apply?
The Financial Claims Scheme can only apply when it’s activated by the Australian Government. This will only be done in the unlikely event that a financial institution has failed and can no longer meet its financial obligations. Once activated, the FCS is administered by the Australian Prudential Regulation Authority (APRA). APRA then aims to pay out most protected deposits within seven calendar days.
Who is an account holder under the FCS?
At People’s Choice, all account holders are account holders under the FCS – this includes individuals, companies, partnerships, unincorporated associations, trusts, superannuation funds and approved deposit funds.
A group of individual trustees of a trust, superannuation fund or approved deposit fund is treated as a single account holder.
An account holder doesn’t have to be an Australian resident or citizen to be covered under the FCS.
What type of accounts are covered?
The Financial Claims Scheme applies to all People’s Choice deposit, transaction and savings accounts. Credit balances on credit card facilities or other loans are not covered.