Government deposit guarantee reduced

The government has announced today that it will lower the deposit guarantee under the Financial Claims Scheme, from $1 million to $250,000, as of February 2012.

The deposit guarantee was introduced during the global financial crisis, to provide a measure of stability and confidence. Now that the GFC has receded, and Australian financial institutions  - especially credit unions and other mutuals - remain stable and secure, the guarantee is being reduced.

The new permanent cap of $250,000 will apply from February 2012 to depositors in all of Australia’s regulated banking institutions: credit unions, building societies and banks. The current cap of $1 million has been under review since May 2011.

Regardless of the status of the deposit guarantee, Teachers Credit Union remains secure and robust, just as it has always been.

As one of the five largest credit unions in Australia, with over $3.5 billion in assets, your credit union is prudently managed.  Our liquidity is higher than that of most banks at over 18%, and our capital adequacy is also higher than most banks at close to 16%.

Our competitive rates on all savings products and excellent service are unchanged, as is our commitment to the security of your money.

> Take a look at our great rates