Financial Services Claim Scheme

About the Financial Claims Scheme

The Financial Claims Scheme (FCS) is an Australian Government scheme that provides protection to deposits in banks, building societies and credit unions, and to policies with general insurers in the unlikely event that one of these financial institutions fails.

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).

The following frequently asked questions relate to the Financial Claims Scheme for banks, building societies and credit unions.

Are temporary large balances covered under the FCS (for example funds from the sale of a property or a superannuation lump-sum payment)?

The FCS limit of $250,000 applies irrespective of the source or purpose of the funds, or the period for which the funds were intended to be held in an account. For amounts above $250,000, no additional protection is offered under the FCS.

If I have deposits of less than $250,000 in more than one banking institution, will they all be covered under the FCS?

Yes, if each institution is licenced by APRA and if the deposits are held in accounts protected under the FCS. To see the list of banking institutions licenced by APRA go to the bank, building society or credit union page, which also includes other banking businesses that these licenced institutions operate under different trading names.

What banking institutions are covered under the FCS?

Under the FCS, deposits are protected up to a limit of $250,000 for each account holder at each bank, building society or credit union that is incorporated in Australia.