03.03 – Depository Account

A Depository Account is any commercial current account, and savings account evidenced by a certificate of deposit, investment certificate, certificate of indebtedness, or other similar instrument where cash is placed on deposit with an entity engaged in banking or similar business.

The account does not have to be an interest bearing account.

A Depository Account will include any credit balance on a credit card (a credit balance does not include credit balances concerning disputed charges, but does include credit balances resulting from refunds of purchases) issued by a credit card company engaged in banking or similar business.

However, credit cards will not be considered to be Depository Accounts where the issuer of the credit card implements policies and procedures (by the later of 30 June 2014 or the date it registers as a Financial Institution) either to prevent a customer deposit in excess of $50,000 or to ensure that any customer deposit in excess of $50,000 is refunded to the customer within 60 days.

Where a Financial Institution elects to apply the threshold for Depository Accounts, this will mean that a credit card account will only be reportable where, after applying the aggregation rules (See Section 4.14):

  • there are no other accounts and the balance exceeds $50,000
  • the total balance on all aggregated Depository Accounts (including the credit card balance) exceeds $50,000

See Section 2.19 for information in respect of entities that are credit card issuers.

The definition of Depository Account also includes an amount held by an Insurance Company under an agreement to pay or credit interest. However, amounts held by an Insurance Company awaiting payment in relation to a Cash Value Insurance Contract where the term has ended will not constitute a Depository Account.