Financial Claims Scheme FAQs

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.

The FCS limit of $250,000 applies to the sum of an account holder’s deposits under any single banking licence, and this includes accounts with any other banking businesses that the licensed banking institution may operate under a different trading name or brand.

On 1 March 2023, Newcastle Permanent and Greater Bank came together to create Newcastle Greater Mutual Group Ltd (NGM Group), one of Australia’s leading customer-owned financial institutions. Both brands continue to operate in the marketplace, as part of a single banking institution, operating under the NGM Group banking licence.

This means, if a customer has deposits with both Greater Bank and Newcastle Permanent which total more than $250,000, a single government guarantee will apply and so the customer’s total deposit guarantee will be $250,000.

Information on the FCS is available on the FCS website – www.fcs.gov.au ^»