Deposit Guarantee:

What is the Australian Government Large Deposit Guarantee Scheme?

The Australian Government Large Deposit Guarantee is a Federal Government initiative announced on 12 October 2008 that guarantees the deposits of customers of Authorised Deposit Taking Institutions (PDF 28kB).

On 7 February 2010, it was announced that the Guarantee Scheme will be closed to all new applications as of 31 March 2010. Existing guarantees held with ANZ will continued to be guaranteed. Separate arrangements will continue to apply for deposit balances totalling up to and including $1 million per customer per institution and will continued to be guaranteed without charge.

No new applications will be accepted by ANZ after 31 March 2010. All Guarantees will be capped at the amount guaranteed as of 31 March 2010. Current Guarantee holders will be able to change the amount guaranteed however it cannot exceed the guarantee amount as at 31 March 2010.

Fees applicable to the deposit guarantee are:

• Deposits of up to A$1 million are fee free
• A fee 0.7%pa will apply for the guarantee for the balance of deposits above A$1 million. For example, for a deposit of $1.5 million the first $1 million would be guaranteed free and a fee of 0.7% pa would apply to the $500,000 above the first $1 million.

What deposits are covered by the Guarantee?

The guarantee applies to deposits made by individuals, partnerships, businesses, (including in their offshore branches) trusts and government entities. View all eligible accounts (PDF 28kB).

Why is ANZ participating in this scheme?

Australian banks remain fundamentally sound, profitable, well capitalised and well-regulated financial institutions and ANZ is amongst the top 30 AA or higher rated banks globally.

ANZ is participating in the Federal Government Deposit Guarantee Scheme to give customers an option to take out a Government guarantee should they want to in the current economic climate.

What happens if I have more than A$1 million deposited with an Australian Financial Institution?

Until 31 March 2010, you have the option to take up the Government Guarantee on deposits of more than A$1 million. The cost of this will be 0.7% pa on nominated balances above A$1 million.

Download

• Terms and Conditions (PDF 108kB)
• Application Form (PDF 143kB)
• Direct Debit Request Form (PDF 88kB)

This was written to provide you with information about the Australian Government deposits guarantee.

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For more detailed information on the Australian Government guarantees please refer to the Treasury website links below:

Wholesale Funding Guarantee:

• Available until "market conditions have normalised".
• Applies to senior unsecured vanilla debt securities for a maximum tenor of 5 years.
• Guarantee is irrevocable & unconditional.
• Australian Government will pay on demand in a timely manner.
• Guaranteed bonds will be AAA/Aaa rated by S&P and Moodys.
• APRA risk weighting is 0% (same as Government exposures).
• Certificates of deposit and bank bills will be covered under the WFG (not the DG).
• Visit the website for further details: Government Deposit Guarantee website.

Fee Structure:

Credit Rating	Debt Issues Up to 60 Months
AA	70 bp
A	100 bp
BB and Unrated	150 bp

 

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