Message From The CEO
1 December 2008

Holiday Coast Credit Union Ltd application for the Guarantee under the Australian Government Guarantee Scheme for Large Deposits is approved.

Up until the 28 November 2008, all deposits with Authorised Deposit-taking Institutions (ADIs) (of which Holiday Coast Credit Union Ltd is one) were fully covered by the legislated Government Guarantee as announced by the Prime Minister 12 October 2008.

From 28 November 2008, deposit amounts over $1 million have the option of being guaranteed for a fee, while deposits up to $1 million will continue to be covered by the "free" legislated guarantee.

Deposit amounts over $1 million can voluntarily be guaranteed, and will be subject to a fee payable at the rate of 1.5% per annum paid monthly in arrears to the Reserve Bank, on the balance of the deposit above $1 million. It is up to the ADI to determine whether guarantees will be sought on individual deposit amounts, and how the fee for such will be passed through.

However, to be able to offer the high value deposit guarantee, all ADIs will need to be certified under the new Scheme by the Reserve Bank.

View Holiday Coast Credit Unions Certificate of Guarantee.

Holiday Coast has been in the business of looking after its member's funds for over 40 years. We've partnered with our member-owners when the economy has thrived and when it has struggled, and as in the past, we will continue to work with them as we navigate through the current economic conditions.

We offer conservative, strong and member-focused banking to more than 30,000 members, the majority of who like you and I live on the Holiday Coast and the Maitland area. Members are well serviced with 17 branches, a kiosk and 2 agencies as well as internet and telephone banking.

Holiday Coast Credit Union has a strong capital base, which serves to back your deposits. What's more, we don't invest in things that are risky or unknown.
Our deposit book continues to grow as members choose Holiday Coast to look after their hard earned savings, and provide their banking needs.

Our members' deposits are primarily used to lend to hard working people in the Holiday Coast and Maitland regions of New South Wales - our friends and neighbours essentially - to buy their homes, cars and other personal assets with a small portion lent to small business members. In all cases loans are granted by reference to the Board approved conservative lending policies with the majority of funds lent secured by residential mortgages.

The Australian mutual credit union and building society system is robust and strong, with combined assets exceeding $65 billion, and more than 4.5 million members. The Australian credit union system has a solid deposit base, a sound portfolio of loans to Australians, and prudent capitalisation levels.