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. If you hold a deposit product with Westpac Banking Corporation (WBC), you may be entitled to payment under the FCS in certain circumstances.
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 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 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.
The limit applies per customer per banking licence. That is, the limit applies to the combined total amount of funds you have with Westpac, Bank of Melbourne, St.George Bank, BankSA, RAMS (including any other eligible deposit products that are issued by WBC but distributed by third parties under their own brands), because these funds are held under a single WBC banking licence.
Where can I get further information on the FCS?
You can find out more information about the various brands and products offered under the WBC banking licence and covered by the FCS by contacting WBC directly.
Further Information on the FCS is also available on the FCS website - www.fcs.gov.au.