How safe are your savings?

Thursday October 9, 2008

Off the turmoil in Wall St during the past few weeks, several banks in the US have collapsed. While the chances of Australia's major banks going bust are very slim, there is concern about what would happen to our savings accounts if one of our banks did go under.

Even though there is no trouble in the foreseeable future, the Australian government is looking to introduce a legislation that would refund up to $20,000 per person for deposits in savings accounts and cheque accounts in banks, credit unions, and building societies. With the introduction of this policy, roughly 80% of all bank accounts would be covered. If anything does happen, Australians will have ready access to their money and not have to endure a lengthy process to retrieve their funds.

Many bank accounts offer very competitive interest rates, especially with online saving accounts. By finding a savings account with high interest and low annual fees, you'll be able to save more money. Try not to worry about the stability of your bank - Australian banks are very stable and this policy will protect you even more.

As interest rates were lowered on Tuesday, many people will have a little extra money in their pockets. If you are relatively debt free, you might like to place your extra money into a savings account, such as a bank account for kids. You can apply for a savings account online if you want to start saving for your child's future.

Back to News Index | Back to Home