ADIS 250k BANK GUARANTEE

Discussion in 'Loans & Mortgage Brokers' started by Property Baron, 21st Mar, 2020.

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  1. Property Baron

    Property Baron Well-Known Member

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    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,
     
  2. paulF

    paulF Well-Known Member

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  3. Property Baron

    Property Baron Well-Known Member

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  4. Trainee

    Trainee Well-Known Member

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

    wonder what people panicked about before that?
     
  5. Property Baron

    Property Baron Well-Known Member

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    Imagine if you had millions in the account..
     
  6. Trainee

    Trainee Well-Known Member

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    which bank failed taking deposits with it?
     
  7. Property Baron

    Property Baron Well-Known Member

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    Not sure what this means
     
  8. Trainee

    Trainee Well-Known Member

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

    Property Baron Well-Known Member

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    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?
     
  10. Trainee

    Trainee Well-Known Member

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

    datto Well-Known Member

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

    Trainee Well-Known Member

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

    Property Baron Well-Known Member

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    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?
     
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  14. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Pyramid Building Society :)

    but then with a name like that .......................

    ta
    rolf
     
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  15. Waterboy

    Waterboy Well-Known Member

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    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.
     
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  16. datto

    datto Well-Known Member

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    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.
     
  17. Property Baron

    Property Baron Well-Known Member

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

    Property Baron Well-Known Member

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    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.