Business

Depositors fret about guarantee

Noel Whittaker
Noel Whittaker

FROM Wednesday February 1st, the Federal Government Bank Deposit Guarantee will be substantially reduced. From that date, only deposits of up to $250,000 will be subject to a Guarantee without charge. Previously, deposits of up to $1 million were covered.

The concept of the government guaranteeing bank deposits is a recent one - the current guarantee was only introduced in 2008, at the height of the Global Financial Crisis, to stop people panicking and withdrawing all their money and placing it under the bed.

The guarantee covers all banks with a local banking licence as well as credit unions and building societies.

From emails I have been receiving it is clear that many people are concerned at the reduction in the amount of the Guarantee and are considering dividing up their funds and putting some with various banks.

Just mind that bank depositors rank ahead of bank shareholders. Therefore, for any Australian banker depositor to lose their money, it would first be necessary for all the shares in that bank to become worthless. Can you imagine what would happen to our stock market and the economy generally, if that happened?

I have total faith in the security of our Australian banks and will continue to be a bank shareholder. A far more realistic issue for most Australians is getting the best rate on their savings. 

The fact that billions of dollars have lain idle in low interest bank accounts is a sad indictment of the inertia that affects far too many Australians.

Noel Whittaker is a co-founder of Whittaker Macnaught Pty Ltd.  His advice is general in nature and readers should seek their own professional advice before making any financial decisions.  His email is noelwhit@gmail.com
 

Topics:  noel whittaker opinion



Wanted man who frequented northern beaches arrested

ARREST MADE: A man wanted on warrants, who frequented Coffs northern beaches, was arrested in Hornsby.

Man wanted on warrants who frequented the Coffs beaches arrested

'Honk to stop Adani': Protesters gather on hwy

Protesters stopped traffic today in the Coffs City Centre.

Community support for anti coal mine protest undeniable.

VIDEO: The strength of the human spirit

Shark attack survivor Paul de Gelder shares his powerful story with The Coffs Coast Advocate's Harbour Club at C.ex Coffs.

A powerful story of personal motivation and inspiration

Local Partners

Five ways to raise money-smart kids

TEACHING your kids to be smart with money might be one of the best investments you ever make.


What to expect at Birds of Tokyo's Ipswich gig

The band will perform at the Racehorse Hotel on Friday.

BAND member Glen Sarangapany talks music, pub grub and doing shoeys

Petula Clark delighted to sing live for Australian fans

STILL TOURING: English singer Petula Clark is coming to Queensland.

English star Petula Clark still puts on a great show, even at 84.

Do you really know your road rules?

Cars travel around the roundabout at Villiers and Fitzroy Street. Photo Adam Hourigan / The Daily Examiner

List of the top 10 most misunderstood road rules in NSW.

Concert death toll revised up to 22, tour suspended

TWENTY-TWO people have been killed and at least 59 people have been injured following a terror attack in Manchester

Casual Keanu says fame is ‘cool’

Keanu Reeves in a scene from the movie John Wick: Chapter 2.

NOBODY expected much of John Wick when it was released in 2014.

Ariana Grande breaks her silence after fatal blast

According to reports quoting witnesses, a mass emergency evacuation was prompted after explosions were heard at the end of US singer Ariana Grande's concert in the arena.

The entertainment industry is in shock after attack on concert

Pitch Perfect star suing Woman’s Day over ‘liar’ articles

Actor Rebel Wilson outside court on Friday.

REBEL Wilson's career destroyed by grubby campaign, court hears.

Seven Year Switch: The boner to end all boners

Johnny’s outraged over claims he has a cracked boner.

She gulps. Her face says it all.

Bay to star in Hollywood shark thriller ‘Cage Dive’

Cage Dive, written and directed by Gerald Rascionato, is now screening in the United States of America. It had scenes filmed in Hervey Bay.

And our visiting humpback whales also make appearance.

Celebrity sex tapes: Where does all that money go?

Basically, did Paris and Kim earn fortunes from their videos?

UPDATE: Details revealed on rural land rezoning

REZONING: Large areas of Bonville have been rezoned for residential

Land rezoning will turn farmland into residential living

Bonville to become new housing hub

REZONING: Large areas of Bonville have been rezoned for residential

Land rezoning will turn farmland into housing

One of Maryborough's most historic homes is still for sale

FULL OF HISTORY: Trisha Moulds is owner of the historic Tinana state known as Rosehill. The beautiful home is currently for sale.

It has been the scene of both joy and tragedies over the years.

The face of the Sunshine Coast's overpriced rental crisis

Alyx Wilson had to rent a $385 unit in Currimundi because the market was too competitive for cheaper rental housing. She is now renting a room from friends who own a house in Currimundi, and says its much more affordable.

Young people feel the strain in competitive, expensive rental market

WATCH: Take a tour of a tradie's dream home

5a Bruce Hiskens Court, Norman Gardens, going for $720,000. INSET: Lea Taylor.

Huge block with potential for anything

Ready to SELL your property?

Post Your Ad Here!