Increase font size Decrease font size

Government Deposit Guarantee

Attention: open in a new window. Print

Your deposits are safe with Bankstown City Credit Union


Deposits with Bankstown City Credit Union continue to be covered by the Financial Claims Scheme, which has been confirmed as providing permanent protection.

In October 2008 the Federal Government introduced a temporary deposit guarantee capped at $1 million per person. From 1 February 2012 a new permanent deposit guarantee with a cap of $250,000 per account holder will apply.

What this means to you:

  • A new Financial Claims Scheme with a permanent cap of $250,000 per account holder will apply from 1 February 2012.
  • So your deposits with Bankstown City Credit Union continued to be covered by the Government Financial Claims Scheme subject to the permanent gap.
  • Term deposits which existed on 10 September 2011 will continue to be covered up to $1 million until either the scheduled maturity date or 31 December 2012, whichever is earlier.

Bankstown City Credit Union is an authorised deposit taking institution (ADI) subject to regulation under the Banking Act 1959 (Cth). Like all major banks in Australia, Bankstown City Credit Union by the Australian Prudential Regulation Authority (APRA) and subject to the same prudential standards and provisions.

View APRA’s frequently asked questions about the Financial Claims Scheme.

How does this affect Bankstown City Credit Union

  • Bankstown City Credit Union is safe and secure. The same measures of protections and laws that apply to the banks also apply in full to Bankstown City Credit Union.
  • The new Government deposit guarantee applies in exactly the same way to deposits with Bankstown City Credit Union as it does with all credit unions, banks and building societies - all are fully covered by the backing of the Australian Government.
     
  • Savings with Bankstown City Credit Union are now backed not only by our strong performance and member-focus, but also by a Government guarantee.

Strict Australian regulation protects your deposits

  • Bankstown City Credit Union meets the same strict, legally-enforceable standards as banks, under the Banking Act and strict oversight by the Australian Prudential Regulation Authority (APRA).

The Australian prudential regulatory regime is designed to ensure that depositors do not lose money. APRA's strict rules on safety and capital continue to apply to Bankstown City Credit Union.

Bankstown City Credit Union - A safe haven

 

  • As a mutual, our focus is on our members, and we are conservative and careful managers of our members' money.
  • Bankstown City Credit Union is well centralized. At June 30 2010, our capital ration is over 20%, double that of the banks.
  • Bankstown City Credit Union is also highly liquid. At June 30 2010, Liquidity ratios are double that required by the Australian Prudential Regulation Authority (APRA).
  • This demonstrates Bankstown City Credit Union strength and our focus on conservative, prudent management of our members' money.
  • Bankstown City Credit Union does not have any direct exposure to the US sub prime markets and does not invest in equity (stock) or other risky markets.
  • Bankstown City Credit Union only lends funds to ordinary Australians, mainly backed by mortgages over their homes.

Questions?

If you have any questions, please contact us Enquire