Is my money guaranteed by the Government? (Financial Claims Scheme)
The Tyro Bank Account is a protected account under the Financial Claims Scheme (FCS), which guarantees repayment of depositor funds up to $250,000 per account holder at an authorised deposit-taking institution in the unlikely event of their insolvency.
What is the Financial Claims Scheme?
The Financial Claims Scheme 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 Financial Claims Scheme limit applied?
The FCS limit of $250,000 applies to the sum of an account holder’s deposits under the one banking license. 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 get further information on the Financial Claims Scheme?
For more information visit ASIC’s MoneySmart website or http://www.fcs.gov.au.
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