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

Topics:  noel whittaker opinion

Bushfire out of control north of Grafton

No Caption

Rural Fire Service and National Parks firefighters in action

Council's strategy to reduce impact of Maclean's bat problem

Clarence MP Chris Gulaptis and Clarence Valley Council Mayor Jim Simmons talk at the bottom of Hillcrest where the bats population has taken over the trees. Clarence Valley Council has received a grant from the state government to manage the bat population in the area.

New seats stop school kids from 'getting splattered by bat poo'

Natalie returns home to perform at the Country Muster

Natalie Davidson will perform at the Clarence Valley Country Muster on Friday, Saturday and Sunday.

There will be one local face on stage at this years country muster

Local Partners

Hear Ken Done speak at Grafton gallery

Fresh from judging this year's Jacaranda Acquisitive Drawing Award, legendary Australian artist Ken Done will give a talk at the Grafton Regional Gallery.

2016 a life changing year for Kasey Chambers

Kasey Chambers will perform at the Grafton District Services Club on November 5.

"I feel like I have a new voice in my life."

Huge lineup of live entertainment this Jacaranda weekend

The Rocky Horror Dinner and Show is set for the Grafton District Service Club on Saturday night.

Entertainment hots up as Jacaranda fever strikes

Sister's leukaemia fight inspires Courtney to get UGLY

Courtney and Siobhan Hoy.

Top prizes include two days labour from Grafton Ghosts captain-coach

The Bachelorette fans rally around devastated Matty J

The Bachelorette runner-up Matty Johnson.

CALLS for reality dating show's runner-up to be the next Bachelor.

RECAP: The Bachelorette S2E12 - the finale

Georgia Love pictured in a scene from The Bachelorette finale.

GEORGIA chooses Lee and leaves Matty J heartbroken.

The Bachelorette finale: Georgia declares her love for Lee

Georgia Love with The Bachelorette winner Lee Elliott.

MATTY J left heartbroken in emotional grand final.

2016 a life changing year for Kasey Chambers

Kasey Chambers will perform at the Grafton District Services Club on November 5.

"I feel like I have a new voice in my life."

Tom Cruise credits success to Scientology

Tom Cruise

Tom Cruise credits his success to Scientology

Hacksaw Ridge leads AACTA Awards nominations

Andrew Garfield and Teresa Palmer in a scene from the movie Hacksaw Ridge.

MEL Gibson's wartime drama opens in cinemas next week.

Want to own one of Australia's best restaurants?

TOP GONG: Mooloolaba Spice Bar has been named in TripAdvisor's Top 10 Australian restaurants for 2016.

Here's your chance to pick up one of the Coast's favourite eateries

Maclean's highest house sale this decade

SOLD: Ray White real estate agent Alan Bruchert has just put a new sticker on Maclean's most expensive house to sell in a decade.

Unique riverfront home sells for more than $920,000

Tough times in CBD: Woolies says goodbye Ipswich

Woolworths in the Ipswich Mall.Photo: Rob Williams / The Queensland Times

The last day of trading will be January 1

Look at me! Kath and Kim home up for sale

Kath and Kim from the iconic Aussie TV series.

'Crack open the Baileys and grab a box of BBQ Shapes'

Hinterland horse stud passed in for $8.25 million

UNREAL: This Maleny estate is incredible.

12-bedroom hinterland horse stud still available

Hit songwriter's Noosa mansion on market

SPECIAL PLACE: The Cintamani estate is going to tender, marketed by Tom Offermann Real Estate.

Is this Queensland's best property?