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Government Deposit Guarantee

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All SCU deposits up to $250,000 per membership remain guaranteed by the Australian Federal Government free of charge.

The Australian Government guarantees all deposits with Australia’s credit unions, building societies and banks in response to the economic conditions experienced during the financial crisis.

For members with over $250,000 in deposits they now have a range of options available to them should they wish to have their savings guaranteed.

The Australian Government announced that a fee would be payable to guarantee individual deposits in excess of $250,000.

Members have the choice of whether or not to guarantee their savings over $250,000.

  SCU CEO Ashley Jennings said:

"I expect members will continue to understand that we are already in a very strong financial position. SCU has no exposure to the American sub-prime market. We have no exposure to large commercial or business corporations either, as our focus is on assisting individuals, small businesses and related parties. Furthermore, SCU has built up a strong capital position with over $46 million in member reserves which is fundamental to managing the credit union through the current financial upheaval."
  Options available to members who want their deposits over $250,000 to be guaranteed include:
  • Members may be in a position to spread out their funds by allocating them across different memberships such as husband and wife or individual and company. Members are encouraged to seek their own financial advice on whether this is appropriate for them.
  • If members would like their deposits over $250,000 guaranteed, they can complete the Application for the Government Deposit Guarantee and complete the Australian Governement Guarantee Quick Direct Debit Request to enable them to pay the fee of 1.50% p.a. to have those funds fully guaranteed by the Government. Please note the cost only applies to that amount in excess of $250,000 and is paid monthly in arrears.
  • A list of all Account types that can be included in your request for the Guarantee can be found by clicking here or at your nearest branch.

Questions?

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