Savings The Financial Claims Scheme: what savers need to know
Deposits with Charity Bank Australia are protected by the Australian Government's Financial Claims Scheme, up to A$250,000 per account holder per authorised deposit-taking institution.
Savers ask us regularly what would happen to their money if a bank failed. In Australia the answer is the Financial Claims Scheme, a government-backed protection that covers deposits held with an authorised deposit-taking institution, or ADI. Charity Bank Australia is an ADI, and the deposits we hold are covered.
The scheme protects up to A$250,000 per account holder per ADI. The limit applies to the person, not to the account: if you hold several accounts with us, the balances are added together and the A$250,000 cap applies to the total. It is worth checking whether any other bank you save with sits under the same banking licence, because in that case the limit is shared.
Joint accounts are treated differently, and in savers' favour. Each account holder on a joint account is covered separately for their share, so a joint account held by two people can attract protection of up to A$500,000 between them.
The scheme is activated by the Australian Government and administered by APRA. If it were ever activated, APRA would aim to pay protected deposits without customers needing to lodge a claim, using the account records the failed institution holds — which is one of several reasons we ask customers to keep their contact and identity details current in online banking.
Not everything is covered. The Financial Claims Scheme protects deposits. It does not protect crypto assets held in a wallet, which are not a deposit and not covered by the Financial Claims Scheme, and it does not protect investments, shares or units in managed funds, whoever they are bought from.
None of this changes how your savings work with us day to day. Your money continues to fund loans to charities, community organisations and social enterprises across Australia, and you can see where it goes in our impact reporting.
For more on how the scheme applies to your accounts, see the Financial Claims Scheme page.
About Charity Bank Australia
Charity Bank Australia is the loans and savings bank owned by and committed to supporting the social sector. We use our savers’ money to make loans to housing, education, social care, community and other social purpose organisations — over 1,480 loans and A$653 million lent so far.
Nothing in this article constitutes an invitation to engage in investment activity nor is it advice or a recommendation and professional advice should be taken before any course of action is pursued.
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