Government deposit guarantee

Government deposit guarantee

BankVic is committed to ensuring the security of members' money. As a bank, we are regulated by Australian Prudential Regulation Authority (APRA). Our prudent financial management means that we represent a safe haven for our members. Our credit quality is exceptional and we have no exposure to investments overseas. BankVic is prudently managed at all times and is well capitalised, liquid and profitable.

BankVic members are our priority with our key responsibility being to help our members to achieve a more secure financial future.

The Australian Government is also mindful of the security of your savings and guarantees deposits held in authorised deposit-taking institutions (banks, credit unions and building societies) up to the cap of $250,000 through its the Financial Claims Scheme.

How does this affect my deposits?

Depositors benefit from the comfort of the $250,000 guarantee which applies per account holder, per Authorised Deposit taking Institution (ADI). The scheme is exactly the same in each bank, credit union and building society.

What deposits are covered by the Financial Claims Scheme?

The Financial Claims Scheme applies to a wide range of deposits held with banks, building societies and credit unions, including the following:

  • Savings and At-call accounts
  • Term deposits
  • Current accounts
  • Cheque accounts
  • Debit card accounts
  • Transactions accounts
  • Personal basic accounts
  • Cash management accounts
  • Farm management deposits
  • Pensioner deeming accounts
  • Mortgage offset accounts, either 100 per cent or partial offset, that are separate deposit accounts
  • Trustee accounts
  • Retirement savings accounts

With the banking sector highly regulated in Australia, the Financial Claims Scheme has extra protection to ensure that your deposits are safe with any regulated banking institution – any bank, credit union or building society in Australia.

For more information, please refer to the Financial Claims Scheme for ADIs FAQs from the Australian Prudential Regulation Authority (APRA) website.

I am thinking of a term deposit with a BankVic. Will it be covered by the FCS? Are you safe?

Australia has one of the strongest banking regulatory system in the world – all banks, building societies and credit unions meet exceptionally high standards set down by the regulator, APRA. Deposits in all Australia's banks, building societies and credit unions are safe. Member deposits are guaranteed up to $250,000 per member per ADI.

Strict Australian regulation protects your deposits.

  • BankVic meet the same strict, legally-enforceable standards as other Australian banks, under the Banking Act and has strict oversight by APRA.
  • The Australian prudential regulatory regime is designed to ensure that depositors do not lose money. APRA’s strict rules on safety and capital continue to apply to all banks, building societies and credit unions to the same high standards.

BankVic – a safe haven

  • As a mutual or customer-owned bank, we are just that owned by our customers, our members. Our focus is on your interests, and we are conservative and careful managers of our members’ money. 
  • We fund more than 80% of our lending from household deposits, and therefore have very little exposure to the uncertain wholesale markets.
  • As we do not pay dividends to Shareholders, all profits are available to improve services and products for our members.
  • This demonstrates our scale and strength in the Australian banking system, and our focus on conservative, prudent management of our members’ money.

If you have any questions or require any further information, please call contact us or visit the APRA website www.apra.gov.au and the ASIC website www.moneysmart.gov.au.

BSB: 704 230

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