Quillian

Folks,

One thing very few people are aware of is that there is NO BANK DEPOSIT OR OTHER FINANCIAL PROTECTION SCHEME in Australia.

In UK the first GBP 33,000 of your money in each bank and most investments is guaranteed and covered by what used to be FIMBRA (now, I think, FSA).
That means guaranteed by H.M. Government by a statutory levy upon the banks and financial institutions.

In the USA it is $100,000.

In Europe, including most of Eastern Europe, it's about the equivalent in Euros.

Even in the Isle of Man it's GBP 16,000 - but NOT the CHannel Isles.

In Australia there used to be a scheme 20 or 30 years ago, before privatisation mania but now there's a "code of practice" and very low reserve to lending ratio; you can imagine what that means with Australian "close to the edge" business practices.

(yes, that's another thing to be very aware of)

This is a land of planty for banks, no levy, fewer controls - and in the 35v years I have been here a lot of banks have gone bust or been bought out in suspicious circumstances.

Be warned. Think about moving all your hard-earned over here (unless you have to to migrate - but keep your UK, Euro or US accounts and then shift some back for safety.

It may be the same in NZ since they followed Thatchermania, do check.

My wife and I closed down most of our UK bank accounts before moving back here in 2001 and before I realised the old protection / guarantee scheme had gone. I do wish I hadn't as it seems to be impossible to open accounts in UK from overseas these days.

HELP : Does anyone have advice on that?

All too aware of my own warning I'd like to shift some family funds back into guaranteed FSA-covered accounts for safety's sake with the biggest ever economic tsunami bound to arrive and shatter our consumer complacency one of these days.

Does anyone know how we can open an account in UK?

yanH

Sounds a bit scary but I would imagine that if you have your money with somebody like the Commonwealth Bank or ANZ then its as safe as if it's in a UK Bank. I can't imagine that the Australian Government would let either of them go bust.

spottydog

I totally agree, can't imagine the Australian government would let any of the big 4 go under in the same way as I couldn't imagine the UK letting any of their big banks go under, it would just mean to much risk to the whole country with runs on all the banks and a likelihood of civil disorder to go with it.

esperanza

I'd like to agree with the 'it'll never happen' theory, but not many people saw Wall Street coming either.
Perhaps the bigger national banks have their own insurance policies?
It would certainly be worth asking them before depositing substantial savings though. Or I suppose if they're very substantial then look in to private insurance of your own? (I don't have enough to worry about that, (un)fortunately!)

Fat Bloke

Maybe in 20 odd years they will catch up with the rest of the civilised world.

Centurion

I think that to suggest keeping a UK account open is sensible advice, however on the basis that your money is safer in the UK would be just a wee bit paranoid.

Most of us on this board migrate with the intent of never returning to UK shores. Besides, I personally get a higher rate of interest return on investments here

So for me keeping a UK account open is pointless and I certainly wouldnt keep my savings there where its difficult to access, have tax implications and basically be a foreign investment.

Interesting to note though still for general awareness for anyone considering depositing large sums in the First Queensland Water Farmers Bank of Woop Woop or whatever.

Centurion

If the UK were so civilised maybe BCCI or Barings Bank collapsing shouldnt have happened or worried anyone.

yanH

And which country was the bank featured in Rogue Trader from? Maybe you meant that Australia is 20 years behind in its capability to accommodate financial shenanigans