What is the Financial Claims Scheme?

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 was to fail.

Under the Scheme, certain deposits are protected up to $250,000 per account holder at any bank, building society, credit union or other authorised deposit-taking institution (ADI) that’s incorporated in Australia and authorised by the Australian Prudential Regulation Authority (APRA). 

The Scheme only comes into effect if it’s announced by the Australian Government when an institution fails. Once activated, the Scheme is administered by APRA. 

In this scenario, APRA would aim to return the majority of customers’ protected deposits within 7 calendar days. 

How is the Scheme limit applied?

The Scheme limit of $250,000 applies to the sum of an account holder's deposits under the one banking licence. This means all deposits held by an account holder with a single banking institution must be added together towards the $250,000 limit. This includes accounts held under any of the institution’s other trading names. 

Teachers Mutual Bank Limited, an ADI, operates the following divisions under the one bank licence: 

• Teachers Mutual Bank
• Health Professionals Bank
• Firefighters Mutual Bank
• UniBank

For Scheme purposes, Teachers Mutual Bank Limited will aggregate eligible accounts across these divisions to determine each member’s Scheme entitlement. 

Where can I get further information on the Scheme?

You can find more information on the Scheme at www.fcs.gov.au.

What types of accounts are covered by the Scheme?

The Scheme covers a wide range of deposit accounts, including:

- savings accounts
- call accounts
- term deposits
- current accounts
- cheque accounts
- debit card accounts
- transaction accounts
- personal basic accounts
- cash management accounts
- farm management deposit accounts
- pensioner deeming accounts
- mortgage offset accounts (either full or partial offset) that are separate deposit accounts
- trustee accounts
- retirement savings accounts.

How are multiple accounts held under the divisions of Teachers Mutual Bank Limited treated under the Scheme?

If you have one or multiple eligible accounts held under a division of Teachers Mutual Bank Limited including Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank or UniBank, the combined total of those accounts is protected up to $250,000 under the Scheme.

Case study: Mary has one protected account in her name with Firefighters Mutual Bank:

• Account A: $200,000

She also has one protected account in her name with Teachers Mutual Bank:

• Account B: $100,000

Mary’s total balance across the two bank divisions is $300,000, but under the Scheme she’s protected for up to $250,000 in total.

Are mortgage offset accounts covered under the Scheme?

Yes — mortgage offset accounts that are separate deposit accounts are covered under the Scheme.

However, home loan accounts with redraw facilities that aren’t separate deposit accounts are not covered.

When will I get my money back?

APRA aims to return protected deposits within 7 calendar days from Firefighters Mutual Bank operating under the Scheme, up to the $250,000 limit under the Scheme.

Where do I get help and more information on the Scheme?

You can find more information on the Scheme at www.fcs.gov.au.

How are multiple accounts held at Firefighters Mutual Bank treated under the Scheme?

If you have multiple eligible accounts under the same name at Firefighters Mutual Bank, the total combined balance of those accounts is protected up to $250,000 under the Scheme.

Case study: Mary has three protected accounts in her name with Firefighters Mutual Bank:

• Account A: $100,000
• Account B: $100,000
• Account C: $100,000

Her total balance is $300,000, but under the Scheme, she is protected for up to $250,000 in total with Firefighters Mutual Bank.

What should I do if the Scheme is announced for my bank?

If the Scheme is activated for Firefighters Mutual Bank:

Log in and submit a claim on our website so APRA can return your protected deposits.

You’ll need to provide details for an alternate account held at a different financial institution for these funds to be transferred to.

If you don’t have another account or don’t provide these details in time, you’ll be sent a cheque instead. This will be sent to the postal address we have on file. Please note, you’ll still need to open a new account to deposit your cheque.