ABA: Bank deposits safe

Article Category: Demographics

By Andrea Lavigne, 13 October 2009

The Australian Bankers' Association is reminding consumers that deposits up to $1m are guaranteed across all banks, not just the majors.

The ABA's public announcement comes in response to reports that customers are moving their deposits to larger banks because of safety concerns.

"There is a lot of competition in the marketplace for deposits and consumers should shop around for products which suit their needs based on price, product features and services offered by the banks," said David Bell, Chief Executive of the ABA.

"Customers can choose to guarantee deposits over $1m with banks for a fee determined by the Government."

The ABA noted that evidence suggests that consumers are not flooding the major banks with deposits. A recent Reserve Bank Financial Stability Review found that all ADIs have seen an increase through the economic downturn.