IMB & the Financial Claims Scheme

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1. What is the Financial Claims Scheme?

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). IMB is an Authorised Deposit-Taking Institution (ADI) regulated 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.

2. How is the FCS limit applied?

The FCS limit of $250,000 applies to the sum of an account holder's deposits under the one banking licence.

Therefore, all deposits held by an account holder with a single banking institution must be added together towards the $250,000 FCS limit, and this includes accounts with any other banking businesses that the licenced banking institution may operate under a different trading name.

IMB operates as IMB Bank, Shire Local Banking and Hunter United. This means that the total of each depositor's combined accounts with IMB Bank, Shire Local Banking, or Hunter United are covered up to $250,000.

3. Where can you get further information on the FCS?

Information on the FCS is available on the FCS website –www.fcs.gov.au

Please also see our Frequently Asked Questions below.

Frequently Asked Questions

Are my funds safe with IMB?
Yes. IMB is a safe and secure investment option as evidenced by the following:
- IMB meets strict, legally-enforceable standards for banks, under the Banking Act with strict oversight by the Australian Prudential Regulation Authority (APRA).
- IMB is well capitalised, in excess of APRA requirements and above the average for banks.
- IMB is highly liquid. Our liquidity ratio remains around three times that required by APRA.
- Established 139 years ago, IMB holds assets of $5.4 billion and services around 190,000 members.
- As a mutual, our focus is on our Members, and we are conservative and careful managers of our Members’ money.
What if I have several IMB accounts and money in other institutions?

The Government Guarantee applies to the “total funds” held by a person with each Authorised Deposit-Taking Institution (ADI). The total funds deemed to be held in a single institution are based on the aggregate balance of all of a person's accounts with a particular institution.
Your deposits of up to $250,000 with each ADI will be automatically covered by the Government Guarantee. This means that each member can have up to $250,000 of funds deposited with IMB (identified as IMB Bank or Shire Local Banking) guaranteed.
What types of depositors does the Government Guarantee apply to?
For the purposes of the Financial Claims Scheme a depositor includes individuals (including Sole Traders), companies, trusts (including superannuation funds), registered cooperatives and partnerships.
The Financial Claims Scheme applies a guarantee of up to $250,000 for each type of depositor at each institution, so for example, if you hold funds with IMB in your own name as an individual and other funds as trustee of a trust, your personal funds will be guaranteed up to $250,000 and the trust will be entitled to its own separate guarantee of up to $250,000 as the trust is a separate type of depositor.
How is the Government Guarantee applied to a joint account?
If two or more members have a joint account with IMB, the balance of that account will be spread equally across the joint account holders when determining the total balance of deposits each member holds with IMB. For example, if two members hold a joint account with a balance of $300,000, each member is entitled to claim up to $150,000 from the joint account towards their Financial Claims Scheme covered total deposit amount of $250,000 held with IMB.
What deposit products are covered?
The Government Guarantee on deposits currently applies to all types of IMB deposit accounts, regardless of the type of account into which the deposit is made.
The Government Guarantee does not currently apply to loan accounts or equity line accounts with a credit balance.
Is there a limit on the amount covered by the Government Guarantee? How long does the guarantee last?
From the 1st February 2012, there is a limit of $250,000 per person, per institution under the Government Guarantee. The Government Guarantee is now permanent.
Does the Financial Claims Scheme apply to foreign currency?
The Financial Claims Scheme only applies to deposits denominated in Australian dollars.

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Why choose us?

Established in 1880, we have been helping people achieve their financial goals for 140 years and are rated by Forbes as one of the World’s Best Banks. We offer a full range of competitive banking, including home and personal lending, savings and transaction accounts, term deposits, business banking, and can arrange financial planning, insurance and travel products.

We provide simple and secure digital banking solutions online and on mobile, and members enjoy access to free automated phone and internet banking, and a team of professionals at our locally based contact centre. With a growing branch network throughout the Illawarra, Sydney, NSW South Coast, Newcastle/Hunter, the ACT and Melbourne, we have a lending specialist in every branch and a team of mobile lending specialists who will come to you.

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