Australian Government Deposit Guarantee Guide
From 12 October 2008, the Australian government announced the details of a government guarantee on deposits and wholesale funding for banks and other financial institutions who qualify as an 'authorised deposit-taking institution' (ADI).What is the aim of the government deposit guarantee?The government deposit guarantee aims to ensure financial stability for Australia's economy during the global financial crisis. Where depositors may have previously been wary of investing with a particular institution, they can now invest with greater confidence if that institution is covered under the government deposit guarantee. The idea here is that if a financial institution or bank covered under the government deposit guarantee runs into considerable financial trouble, investors will (eventually, by way of the government deposit guarantee claim process) recoup their money.What is covered under the government deposit guarantee?The guarantee covers individuals for deposit balances totalling up to $1 million per institution or bank.For balances over $1 million, the government offers a guarantee arrangement to institutions at significant cost, and thus not all ADIs will choose to participate at this level. If you intend to invest more than $1 million with an institution under the government deposit guarantee scheme, you should check whether you will be covered, and if there is a charge for cover. Government deposit guarantee links
Savings Accounts ... |
Australia | New Zealand
