foxall22

Hi All,

Just looking for confirmation about personal savings. Germany, Ireland, Denmark etc. have all guaranteed personal savings invested in their banks, and the UK has done this up to about 50000GBP I think.

Is there ANYTHING similar in Australia? I have just got off the phone from St George who basically said they didn't know. !?

We are looking to bring the rest of our money over as the exchange rate has swung in our favour... but it is protected in the UK, so I wouldn't want to fret about it here. But all I've read about St George is that it's pretty strong.

Opinions please!

Gemma

DrWho

There are no guarantees over here... Sorry, but you can lose the lot... And St George is just about to be taken over by Westpac so I'd be reading up on them...!

asprilla

there is no protection here, but there is talk of bringing in a $20k guarantee. But this wouldn't happen for some time.

I think that the chances of any of the big 4 banks (and st george is number 5 I think) collapsing is pretty much zero. Just my opinion though.

foxall22

Thanks for the quick replies. Anyone else got their life savings with Westpac/St George?

TillyG

It's so frustrating they don't have any kind of guarantee over here. With the exchange rate fairly decent at the moment, I quite fancy bringing over our money (only GBP 12000 so small-fry compared to some) but I think I would rather bring it over next year at a possibly crapper rate than risk losing the lot in an Aussie bank.

Plus, knowing us, we'd spend it all anyway if it was over here!

bridie

Not me, we're with ANZ and DD has her (small amount of) savings in Bankwest

TBH I dont think there's any guarantee with any of them

Go for it while the rate is up!! Best it's been for months today

asprilla

Well, how do you know that the australian banks won't go under next year?

TillyG

D'oh, what I meant to say was "next year, if we buy a house". If we decide to buy somewhere, then we will arrange to get the money sent over towards the deposit. So it'll be "used" pretty much straightaway rather than sitting in the bank, iykwim?

Wendy

This may help you decide....or not lol

http://www.abc.net.au/pm/content/2008/s2383424.htm

Grayling

No need to worry

We have been informed many times that Australian banks will have no problems......obviously just media hype.

Wendy

That's alright then.......although I'm pretty glad that I don't have lots of savings right now, and if I did I think it would be hidden under my bed

brucekaren

If there is not guarantee to protect savings, then the banks have no safety net for all those city high flyers who want to get rich at our expense.

We are considering using the Commonwealth Bank. I would think with them having a UK branch in London, would allow our savings to be covered by the £50k guarantee. Provided its held in the UK branch. Exchanging £'s into $'s would then be easy too.

Whats everyones thoughts on this......?

NowInOz

[QUOTE=brucekaren;6853932]We are considering using the Commonwealth Bank. I would think with them having a UK branch in London, would allow our savings to be covered by the £50k guarantee. Provided its held in the UK branch.[QUOTE]
Yes, it will be covered by the GBP50k guarantee.

See here for confirmation:
www.migrantbanking.co.uk/legal_information/

Scroll down (it still says GBP35k but it's now GBP50k).

But when your money is in Australia you might like to know that the four big Australian banks (CBA, NAB, Westpac, ANZ) are all rated AA. And there are only 20 banks in total in the world with an AA rating. That's as good as it gets.

Gina

Reasonable

But when your money is in Australia you might like to know that the four big Australian banks (CBA, NAB, Westpac, ANZ) are all rated AA. And there are only 20 banks in total in the world with an AA rating. That's as good as it gets.

Gina[/QUOTE]

RABO BANK available in Australia with good rates is AAA rated. But we've all seen the value of ratings recently!

Regards

haggis supper

The main Aus banks are well regulated (all 4 are AMA accredited), are AA rated, have good reserves of cash, have less exposure to the overseas markets (compared to European banks) and have not been as badly hit as banks in the US and in Europe. On that basis I would say that they would be less likely to suffer the fate of some banks. The authorities here would also be likely to step in if the worst happened.

However, having worked in the UK for UBS and Credit Suisse I could never imagined a time when Lehman, Bear Stearns, Merrill Lynch and AIG would go belly up. These were AAA rated organisations.

Personally if I had large amounts of AUD cash then I would consider opening 2-3 accounts with different banks and therefore spreading the investment/risk. Aus banks will undoubtedly suffer, especially if the markets continue as they are. I doubt whether anyone can say for certain if this could lead to a complete collapse.

Or buy some gold.