Closure of government large deposit guarantee scheme

The Government has announced that the Guarantee Scheme for large deposits over $1M will close to new liabilities from 31 March 2010.

Deposits covered by the Guarantee Scheme on 31 March 2010 (the Final Issuance Date) will continue to be covered for their term (up to five years), and for a period of up to 67 months from the Final Application Date (24 March 2010) in the case of at call deposits.

Depositors will not be able to increase the guaranteed amount above their closing balance on the Final Issuance Date. Any increase (including interest) to the balances of guaranteed accounts above their closing balances on the Final Issuance Date cannot be guaranteed.

Guarantee Scheme fees will continue to apply throughout the period for which the guarantee applies to the respective deposits.

The Financial Claims Scheme will continue to provide a free guarantee of deposits up to and including $1 million.

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