ADIS 250k BANK GUARANTEE

Hi all,

In these uncertain times would it be a wise decision to open a couple of bank accounts if you have over 250k in one of them.
Am I right to say that if your banking institution collapsed and you had say 500k in it you would only be guarenteed 250k back?

How many of you are doing this?
Cheers,

 

Offset and Savings accounts moneys - What if Banks fail or we get a run on the banks

 

Great read but I'm more after direct info on whether or not the banks could collapse and if so have people actually started taking there bank account limits to 250k each account.

 

Prior to oct 2008, there was no deposit guarantee in australia.

wonder what people panicked about before that?

 

Imagine if you had millions in the account..

 

which bank failed taking deposits with it?

 

Not sure what this means

 

As in when was the last time an australian bank collapsed and depositors lost money?

 

I have no idea? Would you think about moving your money around if you had a million sitting in 1 account. I know you will probably say it sitting there is a waste and you would never have this scenario but what I'm asking is what if you did?

 

Personal opinion only. The collapse of an australian adi, to the point where deposits are lost, is too unlikely to prepare for.

 

What about bank "bail in" laws where customers' deposits are seized to save the bank?

 

Final opinion. Possible and likely enough you want to prepare for it are two very different things.

 

Not sure. Can you fill us in on what this would me in a collapse situation in the above scenario please and also what are your thoughts on could it actually happen or not?

 

I'd divide the $1million to $250k and deposit each lot in different ADIs.

But if you must keep in one bank, I have been told CBA is the best-capitalised bank among the Big 4.

 

Sure. Have a read of this:
Stop ‘Bail-in

I don't think it would happen. I'm basing my reasoning on current events. Just have a look at what happens when you restrict the supply of dunny rolls. Mayhem.

Now imagine if you took the money out out of the bank accounts of those very same people? Bedlam.

 

That is what I think too, but I'm no expert.
Thanks for your opinion.

 

So the ADIS says that dual accounts are guarenteed at 250k for each of the accout holders. So if you have 500k and you and partner are both named on accounts then it's guarenteed. Can anyone 100% confirm this is the case. I just don't trust some websites theres probably some fine print that I'm missing.