Grayling

I will soon be shifting quite a large amount of money to Australia.

Does anyone know if the Australian banking system has a scheme similar to the FSA compensation scheme.

At present only the first £35000 of savings deposited are protected in the case of a bank running into trouble (such as Northern Rock).

I doubt if this will be the last bank in the world to be affected.

Is there an Australian scheme and, if so, what sum is protected?

G

Grayling

No offers on this one?

Does such a scheme even exist?

G

ccraig

The scheme exists the same way as in the Uk so you are protected. Most of the major banks have been around for a long time so you are as safe as you can be or at least safer than stufifng your money into a mattress

worzel

At a slight tangent...there was something in the paper earlier this week about the Reserve Bank conducting an audit on all the major banks etc to make sure none of them were at risk of doing a Northern Rock. They were very keen to stress it was precautionary and not because they actually thought it might happen. Yeah, right! Hasn't RAMS been in trouble already??

Amazulu

And Wizard.

Vim Fuego

This link may be of use to you, specifically the first section (3rd paragraph, to be precise):
http://www.rba.gov.au/PublicationsAn...sys_infra.html

Grayling

Thanks for the replies.

The reason asked is that whilst you might be protected it is only the first
£35000 of savings that are protected in the UK and I was looking for the amount protected in Australia.

£35000 is not necessarily a large amount of money.

G

Grayling

If I understand that Vim.....there is no such scheme in existence and that is simply a proposal to set up such a scheme.

G

Vim Fuego

Yup, as far as I am aware, no guarantees to get your money back but it would be politically Very Bad if the RBA didn't bail a failing institution out.

I didn't get the chance to check the current legislation but I don't think it has changed since that article.

<insert numerous disclaimers here >

Funnily enough I was reading around this exact subject today at work as part of my 'business awareness' training.

Such an exciting life I lead

Grayling

Exciting indeed

That is interesting....something to consider.

I wonder how many people are aware of this?

Most people did not know about the scheme in the UK until the Northern Rock affair.

G

Vim Fuego

My day job is full of wonder ... I often wonder why ...

It would appear today that most people don't realise that having a huge credit card bill is bad so I pity the 'victims' (read 'battlers' in Australia ... nasty term that in my opinion is overused) of the next inevitable financial 'correction'.

In some ways I'm glad I lived through Thatcher so I know how the circumstances can change without warning or consideration for the 'ordinary' worker.

Never pays to be in debt to anyone ... ever.

Grayling

Totally agree.

That is why I am careful with the money I have

G

worzel

This sort of stuff scares me. Which is why I spend it on beer rather than save it. That way I can be sure it lasts.

Grayling

....and I bet you just fritter the rest away

G

worzel

That is the wife's job