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You can relax knowing your savings are safe with Qudos Bank under the Government Guarantee on Deposits. As a mutual bank, our sector is highly regulated under the Banking Act 1959 by the same regulator as the major banks, i.e. Australian Prudential Regulation Authority (APRA), and is subject to the same prudential policy and supervision framework.
Authorised by APRA as an Authorised Deposit-taking Institution (ADI), Qudos Bank is covered by the Financial Claims Scheme. Australian regulation provides a Government guarantee to protect deposits up to $250,000 for each account holder, per ADI.
The Financial Claims Scheme (FCS), also known as Australian Government Deposit Guarantee, 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 ADI that is incorporated in Australia and authorised by the APRA.
The FCS covers a range of deposit accounts held with banks, building societies or credit unions incorporated in Australia, but only applies to deposit accounts with funds in Australian dollars.
Qudos Bank accounts covered under the scheme include:
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 licensed banking institution may operate under a different trading name.
For joint accounts deposits are shared equally, between the account holders. Each joint account holder’s share is added to any other eligible deposits they hold in their name at the same banking institution. Each account holder has a total FCS limit of $250,000.
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 APRA. In an FCS scenario, APRA would aim to pay the majority of customers their protected deposits under the Scheme within seven calendar days.
More information on the FCS is available on the FCS website.
