Are the savings in our bank safe?
October 24, 2008 by Josie Kay · Leave a Comment
Q. I am wondering about savings we have with Suncorp Bank. Is it safe or should we pull it out for the time being also which banks have frozen accounts already?
Josie’s answer: If your money is sitting in a savings account within a bank, building society or credit union that is based in Australia, then the Government has guaranteed that you will not lose your money, for the next three years anyway. You will not find a better guarantor.
Foreign banks may be covered by the guarantee, provided they agree to pay a fee, but this can be a little confusing. For example, ING’s parent is based in Holland, but they are covered by the guarantee as they have an Australian subsidiary (up to a $1M. If greater than $1M then they will be charged a fee).
For example, institutions such as Duetche, Credit Suisse do not have an Australian subsidiary in Australia, just a branch office who reports to their parent overseas. Therefore, different rules apply to them. Some commentators argue that this is fair as they made the decisions they didn’t want to operate under the same rules and regulations that apply to our banks, building society and credit unions. Read more
Money Tip without the boring stuff - Is My Money Safe?
Even though the Government announced on Sunday 12th October, 2008 they would guarantee all savings within banks, building society and credit unions, I am still getting lots of queries.
Must admit it is confusing as the Government didn’t include the fine print. You will not find a better guarantor than the Australian government. Following is a link to the Treasury Department - www.treasury.gov.au.
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