We currently have a large sum (approx $800K) in an interest bearing bank account at a Australian regional bank. Question is it worth splitting such money across a couple of different banks -not because of interest rates (which are all much the same) but to spread money in case banks start to collapse (eg the Depression).
Should We Leave Our Money in The One Bank?
Comments
Keep in mind the one ADI includes all subsidiaries, so CBA and Bankwest, Westpac and St George, etc.
Keep in mind also that "The FCS can only come into effect if it is activated by the Australian Government when an institution fails" does not mean that it will be activated when an institution fails.
We currently have a large sum in an interest bearing bank account at a Australian regional bank. Question is it worth splitting such money across a couple of different banks -not because of interest rates (which are all much the same) but to spread money in case banks start to collapse (eg the Depression).
Yes. For both Hybroid's reason but also because even if it was under $250k (sounds like it isn't), the Financial Claims Scheme will likely take some time to work and you'll lose some interest.
So, to avoid having to spend two to three months without cash, definitely split it up.
apart from $250k per account , there is also the limit of $20b per institution
Thanks for pointer reg institution. I am covered now.
Both limits are applied at the institution level.
As a tax paying pleb you get coverage of $250k per institution not per account, so if you have bank accounts with NAB of say $100k and also have saving accounts with UBANK of $200k, these two companies are under the same 'institution' as NAB owns ubank, so your coverage in this example is capped/limited to $250k not $300k.
If you haven't noticed, you can't buy anything other than drugs with money, every transaction is cashless.
Don't trust your bank, leave it with me.
Don't trust above.
Leave it with me.
OK just dropped it at your back door - thanks for taking the load off for us
We currently have a large sum in an interest bearing bank account at a Australian regional bank
We do?! Can I withdraw my half of it, if you don't mind?
Depends what you mean by large sum of money YMMV
We currently have a large sum in an interest bearing bank account at a Australian regional bank
Is this under or over $250k?
Whatever people said I split my money into 2 banks.
Currently got 13 bank accounts, ball ache to manage , I’m sceptical about bank stability , and whether the gov garuntee is even going to happen, as bail in laws may trumpet it.
Holy fees Batman.
All fee free
So much in one comment
Shares are tanking and likely to tank more.
AUD exchange rates collapsed, the British pound also collapsed.
Housing prices are likely to collapse, if you can't sell them for a higher price to the next buyer then your better off earning interest in the bank whilst the interest rate is still positive
That is until the government imposes a negative interest rate, where you loose money for keeping it inside the bank to encourage spending.
Silver prices collapse, gold prices just collapsed, oil prices collapsed.
I would say you be better off taking your money and betting on black.. But alas all the casinos are shutdown.
BTW commonwealth bank is going to make a killing. They have $20 overdraft fees each time your account is overdrawn. With 1 million people losing their jobs. If they make $2 million more dollars each day in fees which would translate to over $700 million dollar in overdraft fees in year. So they wont be the one going bankrupt.
That's the Commonwealth bank is a good place to keep your money if you have plenty, and not a good place when you have little money.
Gold price certainly has not collapsed. In regards to silver, while the spot price may be down, trying to find physical at anything less than 40% above is a dream scenario.
Ok, whilst gold has't collapsed in a sense, but its fairly unstable, enough to make people question if Gold is a safe to protect your money.
Incorrect, people are absolutely flocking to gold and silver at the moment.
Botcoin it all. The halving is due soon.
Should I leave my overdraft in one bank? I might be too risky for them?
Share the love with all the big 4 if you can.
Which planet are you living on…. Banks are not going to collapse. Where did you get that stupid notion from. If anything, spread in other assets such as gold, property, etc.
What a stupid question
That's how you should split up your money.
https://www.apra.gov.au/financial-claims-scheme-0