8 February 2010

The Federal Government has confirmed that the Financial Claims Scheme will continue to guarantee unconditionally up to $1 million of a depositor's total deposits with any individual ADI (Authorised Deposit Taking Institution) at no cost to the depositor until at least 12 October 2011.

As a separate matter, the Government will remove its wholesale funding bank guarantee from 31 March 2010. This wholesale funding guarantee scheme has been used by some banks, credit unions and building societies to raise wholesale funds and also to cover large deposits (greater than $1M) - in most cases, including with B&E Personal Banking, the option to cover large deposits was only available if the depositor was prepared to pay the government's guarantee fee to cover the deposit. 

The guarantee option for deposits in excess of $1 million, will continue to be available to depositors up until 24 March 2010, beyond which date it will cease to be offered.

Follow this link for more information on the Financial Claims Scheme.