Term Deposit

The Financial Claims Scheme (FCS) 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 authorised deposit-taking institution (ADI) that is incorporated in Australia and authorised by the Australian Prudential Regulation Authority (APRA). 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). In an FCS scenario, APRA would aim to pay the majority of customers their protected deposits under the Scheme within seven calendar days. 

Following the merger between People’s Choice Credit Union and Heritage Bank, the two brands are operated by a single company, ‘Heritage and People’s Choice Ltd’, currently trading as People First Bank and Heritage Bank. The FCS limit of $250,000 is applied to the combined total of an account holder’s deposits held with Heritage and People’s Choice Ltd (whether under the trading name ‘Heritage Bank’ or the trading name ‘People’s Choice Credit Union’ or ‘People First Bank’). For joint accounts, deposits are shared equally between the account holders. This will mean that if you hold deposits with both ‘Heritage Bank’ and ‘People’s Choice Credit Union’ (now trading as ‘People First Bank’), you will no longer have two separate $250,000 guarantees and any amount you hold with the merged organisation, Heritage and People’s Choice Ltd, that is greater than $250,000 will not be guaranteed by the FCS.