There’s a $250k guarantee on your savings
CAN you please explain how the government guarantee for bank savings up to $250,000 works and what accounts and entities are covered?
In what circumstances would this guarantee be used and is it reliable to get 100 per cent of your money back in a timely period?
How careful do you think consumers should be about not having more than $250,000 in any one bank/ credit union, and is it worth the effort and security to spread funds across different entities?
The Australian Government has guaranteed deposits up to $250,000 in Authorised Deposit-taking Institutions (ADIs) such as banks, building societies and credit unions. This means that this money is guaranteed if anything happens to the ADI. The cap applies per person and per ADI.
Just bear in mind that if a bank went broke the shareholders would be the last to be paid. This means the shares in a bank that did go broke would become worthless – imagine the effect on the stock market and everybody’s superannuation if that happened. In my mind a much bigger risk is leaving too much money in cash or term deposits where its value is being continually eroded by inflation and often by income tax.
I HAVE an investment property which I am selling. Capital gains tax will apply to the proceeds. If settlement of the property was scheduled for on or after July 1, apart from the obvious, I suspect, of deferring the payment of CGT for 12 months, are there any disadvantages in adopting this policy?
The only flaw in your strategy is that the effective date for capital gains tax purposes is the date of the contract, not the date of settlement. Therefore, if you wish to push the date of disposal to the next financial year you will need to ensure the contract is signed after 30 June. I TRY and teach the kids the value of regular savings, and they have had a Commbank Youthsaver account for years. It pays some bonus interest each month when there is no withdrawal. I heard that CBA just introduced a one-deposit rule – the kids lose all interest if they make more than one deposit each month.
This will disillusion my 14year-old son who is doing odd jobs, depositing three times a month, and getting excited about watching his balance grow. Is this just another casualty in the bank world of profits?
CBA have confirmed that customers can make as many deposits as they like into the account as part of the terms relating to bonus interest payments on a Youthsaver account. The only way to lose interest for the month is to make no deposit.
Anybody who wishes to discuss the YouthSaver account can contact CBA on 13 2221 — 24 hours a day, seven days a week.
A bigger risk is leaving money in cash where its value is eroded by inflation and tax