We understand members want a high return on invested funds, but also want to know that their savings are safe.

Most people understand higher rates of return on deposits can sometimes be associated with higher risks. And there are plenty of examples of people chasing high returns, only to lose everything when the organisation they deposit their money with collapses. How do you balance safety with high interest rates being advertised from time to time? Is there an easy explanation? Yes. Summerland can offer both.

The main difference is Summerland Credit Union is an Authorised Deposit-taking Institution (ADI). It is our ADI status that we dearly value…it is our ADI status that affords protection to our member depositors.

Credit unions are considered a safe form of financial institution. In fact, there has never been a situation in Australia where a member has lost their money through a credit union collapse. There are several reasons for this.

Firstly, as an Approved Deposit-taking Institutions, like the banks, Summerland is licensed under the Banking Act (1959) and we are regulated and supervised by the Australian Prudential Regulation Authority (APRA).

The benefit of this regulation is it provides comfort to depositors as APRA closely monitors our financial position, ensures we adhere to prudential standards and management practices, to ensure we are sound. They also enforce strict compliance with a range of business measurement ratios specific to financial institutions

In fact all ADI's report to APRA every quarter, so you can feel safe with the knowledge that there is an independent authority ensuring the credit union business is sound. APRA's charter is to protect depositors' funds - they are able to take early intervention actions should the need arise.

We must also compete in a market with numerous choices of financial institution type available to all depositors or investors. To do so, we provide a very competitive interest rate structure on deposit accounts and fixed term deposits. This structure is closely monitored to ensure we stay competitive.

Many other forms of organisation who you can invest with, such as mortgage trusts and other financial services companies, are not ADIs regulated by APRA. Many of these businesses require you to invest based on a prospectus where you evaluate the prospective return and balance against the associated risks.

Summerland offer safety as well as being very competitive in today’s changing business environment.

For us, it's all about members. Being a mutual, Summerland is owned by our members for our members. We are governed by a Board elected by our members to determine our strategic direction. Our vision is

To be a socially responsible financial co-operative.

There are many reasons to partner with Summerland for all your financial needs

Make sure you understand where your money goes as well as the risk. Our members appreciate being part of a financially strong and safe credit union.