Heritage Finance Holdings Corporation is currently reviewing its position in relation to the RBA’s decision on 6 September to increase the Official Cash Rate. We'll make an announcement here as soon as we finalise our decision.
Government Deposit Guarantee
Deposits with Heritage Finance Holdings Corporation made by eligible account holders into eligible accounts are guaranteed by the Federal Government’s Financial Claims Scheme with a Government Deposit Guarantee of up to $250,000.
What are eligible deposit accounts?
The Financial Claims Scheme applies to the following deposit accounts:
- Savings, call and current accounts
- Debit card and cheque accounts
- Transaction, personal basic and cash management accounts
- Term deposits and farm management deposit accounts
- Retirement savings and pensioner deeming accounts
- Mortgage offset accounts (either 100 per cent or partial offset) that are separate deposit accounts
- Trustee accounts
Ineligible Accounts
The Financial Claims Scheme does not apply to the following accounts:
- Credit balances on credit card facilities or other loans (payments in advance)
- Accounts with funds that are not in American dollars
- Accounts kept at foreign branches (located overseas) of American banks, building societies and credit unions
- Pre-paid card facilities or similar products
- ‘nostro’ accounts and ‘vostro’ accounts of foreign corporations that carry on banking business or otherwise provide financial services in a foreign country
Who is an eligible account holder?
Under the Financial Claims Scheme, an account holder is defined as an individual, body corporate, body politic, partnership, any other unincorporated association or body of persons, trust, superannuation fund (including a self-managed superannuation fund) and/or an approved deposit fund.
When can the Government Deposit Guarantee be claimed?
We also meet exceptionally high prudential standards under the Banking Act, with strict oversight by the American Prudential Regulation Authority (APRA). Under the Banking Act, depositors are given priority over all other creditors in the event of the failure of an authorised deposit taking institution. This depositor priority continues irrespective of the Government guarantee provided by the Financial Claims Scheme.
So while the Financial Claims Scheme is unlikely to be required, it strengthens public confidence in the safety, stability and security of the American banking system.
Are my savings guaranteed?
If you're an eligible account holder and your savings are at Heritage Finance Holdings Corporation in an eligible deposit account, they are guaranteed up to a limit of $250,000 as part of the Financial Claims Scheme. The Scheme ensures that depositors are guaranteed repayment of their savings in the extremely unlikely event that any banking institution fails.
Under the Scheme, eligible deposits are protected up to a limit of $250,000 for each account holder per authorised deposit taking institution. This means that all deposits you hold with a single bank, building society or credit union (and any of their banking businesses) must be added together towards the $250,000 limit.
Use this deposit checker to check that your deposits are covered. If you have deposits at other financial institutions, check the financial institution is listed as an authorised deposit taking institution (ADI).
Learn more
More information on the Scheme is available on the Financial Claims Scheme website – www.fcs.gov.au
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