Deposits Accounts

Topics

1. Deposits Accounts

1. Deposits Accounts

   1. Why are there changes being made to the Bonus Saver & Young Saver accounts from 1 October 2012?

      By changing the Bonus Saver & Young Saver products, you now have a better selection of savings accounts based on your particular savings needs. The changes mean that you now have the ability to earn more interest each month providing that you make the minimum deposit requirement and don’t withdraw any funds. Please click here for details of base and bonus rates for these accounts and our other savings accounts.

   2. How does the bonus interest work on my account?

      On our savings accounts that pay bonus interest, bonus interest will be paid dependent on the product that you hold.
       

      • Online Saver, Dream Saver & Dream Saver Plus bonus interest is paid where no withdrawals are made during the calendar month.
         
      • Premium Saver bonus interest is paid where at least $1 is deposited into the account and there are no withdrawals in the calendar month.
         
      • Bonus Saver bonus interest is paid where no withdrawals are made during the calendar month.  However, from 1 October 2012 bonus interest will be paid where at least $50 is deposited into the account and there are no withdrawals in the calendar month.
         
      • Young Saver bonus interest is paid where no withdrawals are made during the calendar month.  However, from 1 October 2012 bonus interest will be paid where at least $5 is deposited into the account and there are no withdrawals in the calendar month.
         

      Deposits made on the last day of the month must be made by 5.00pm Central Standard time, whether or not it is a business day, to qualify for bonus interest in that calendar month. For details of base and bonus rates on the Online Saver, Bonus Saver and Young Saver accounts please click here.
       

   3. How is interest calculated on my Savings and Transaction Accounts?

      On interest bearing savings and transaction accounts we calculate interest on the closing daily credit balance of your account from the last day of the previous month to the second to last day of the month for which interest is being credited. If your savings or transaction account has an interest frequency other than monthly, interest is on the closing daily credit balance of your account from the last day of the month interest was previously credited to the second to last day of the month for which new interest is being credited.

   4. Strict Australian regulation protects your deposits with People’s Choice Credit Union.

      People’s Choice Credit Union, as with all credit unions, building societies and mutual banks and banks, is governed under the Banking Act with strict oversight by the Australian Prudential Regulation Authority (APRA).

      Credit unions and mutual building societies have the highest level of capital in the banking system providing exceptional stability. Collectively, mutuals have combined assets over $80 billion, and over 4.5 million Australians as members.

   5. How safe is my deposit with People’s Choice Credit Union?

      People’s Choice Credit Union is regulated in the same way as all other Australian financial institutions (banks, credit unions and building societies). It is required to meet exceptionally high standards and rules set by the Australian Prudential Regulation Authority (APRA). These regulations and standards have made Australia’s banking system one of the strongest in the world. You can feel confident your money with People’s Choice Credit Union is well protected.

      Additionally, any deposit with People’s Choice Credit Union is protected by the Financial Claims Scheme, which guarantees deposits of up to $1 million (per person per institution) until 1 February 2012, after which date the cap will be lowered to $250,000.

   6. What is the Financial Claims Scheme (the Government Guarantee or Deposit Guarantee)?

      The Financial Claims Scheme ensures that depositors with credit unions, banks, and building societies will be guaranteed repayment of their funds in the extremely unlikely event that any banking institution fails. The Scheme includes a permanent guarantee of $250,000 per person per institution from 1 February 2012. Existing term investments in place at 10 September 2011 have a continuing $1 million guarantee until 31 December 2012 dependant on their maturity date.

   7. Why has the Financial Claims Scheme cap changed?

      The initial $1 million cap for the Financial Claims Scheme was introduced by the Government as an emergency response to the global financial crisis. It was introduced in 2008 for three years. Australia has one of the strongest banking sectors in the world and the Government has decided this emergency response is no longer required, given our system’s clear strength. The new cap brings Australia into line with similar guarantee schemes overseas.

      Prior to the Government Guarantee being introduced in 2008, there was no guarantee on deposits with Australian financial institutions. Additionally, APRA rules and regulations have ensured that no depositor has ever lost funds with an ADI regardless of the existence of a guarantee on deposits.

   8. How does this affect my deposits?

      The Scheme applies in exactly the same way to all credit unions, building societies and banks. From 1 February 2012, deposits will benefit from the $250,000 guarantee.

      There are transitional arrangements in place for all term deposits made prior to 10 September, and new deposits between 10 September and 1 February 2012.

   9. What Financial Claims Scheme cap applies?

       

      Term Investment deposits:	What Financial Claims Scheme cap applies?
      Deposits maturing before February 2012 (including all new deposits made after 10th September 2011 with this maturity).	$1M guarantee until maturity. If the deposit is rolled over, the $1M cap applies until 1 February 2012. The $250,000 cap then applies.
      Deposits (in place on 10/9/2011) maturing between 1 February & 31 December 2012.	$1M guarantee applies until maturity. If the deposit rolled over, the $250,000 cap will apply from the roll-over date.
      Deposits (in place 10/9/2011) that mature after 31 December 2012.	$1M guarantee applies until 31 December 2012. The $250,000 cap then applies.
      All new deposits made on or after 1 February 2012.	The $250,000 guarantee applies.