Treasury has updated its guidance on the Deposit and Wholesale Funding Guarantees Design and Operational Parameters and provided a list of Eligible Accounts and Institutions.
The changes to the operational details include the following clarification:
- For deposits of or under $1 million, the guarantee will be free.
For deposits over $1 million an eligible institution will be able to
obtain coverage, in return for a fee. For example, if a person holds
$1.5 million in deposit accounts in an ADI, the first $1 million would
be guaranteed for free and a fee would be payable to obtain the
guarantee for the remaining $500,000.
- The threshold applies per depositor per institution. That is, the
threshold applies to the total amount of funds held by a depositor in
(separate) deposit accounts with an ADI.
- The fees will be levied on a monthly or quarterly basis depending on the liability.
- The fee scale is on a per annum rate.
- After 28 November 2008, deposits over the $1 million threshold and
wholesale funding will only be guaranteed if an application has been
made to the RBA and the relevant fee has been paid.