How is the Financial Claims Scheme limit applied?
The FCS limit of $250,000 applies to the sum of an account holder’s deposits under any single banking licence, and this includes accounts with any other banking businesses that the licensed banking institution may operate under a different trading name or brand.
On 1 March 2023, Newcastle Permanent and Greater Bank came together to create Newcastle Greater Mutual Group Ltd (NGM Group), one of Australia’s leading customer-owned financial institutions. Both brands continue to operate in the marketplace, as part of a single banking institution, operating under the NGM Group banking licence.
This means, if a customer has deposits with both Greater Bank and Newcastle Permanent which total more than $250,000, a single government guarantee will apply and so the customer’s total deposit guarantee will be $250,000.