Australian Government's Deposit Guarantee
From 28 November 2008, only combined balances up to $1 million per account holder
held in ING DIRECT savings accounts will be guaranteed by the Australian Government
for free. This Government Guarantee will apply until 12 October 2011. Amounts above
the combined balance of $1 million will not be guaranteed, as ING DIRECT will not
offer access to the Government Deposit Guarantee to a customer on the portion of
their combined balance over the $1 million threshold.
Key points:
- If an account holder has an account with a balance of $1.5 million with ING DIRECT,
the first $1 million will be guaranteed by the Government for free until 12 October
2011
- If an account holder has two accounts with a combined balance of $700,000 with ING
DIRECT, the whole balance is guaranteed by the Government for free until 12 October
2011
- If a joint account has a balance of $2 million with ING DIRECT, the whole balance
is covered by the Government Guarantee as the ownership of the funds are split equally
between each account holder. I.e. $1 million per account holder
What accounts does the guarantee apply to?
- Orange Everyday
- Savings Maximiser
- Savings Accelerator
- Personal Term Deposits
- Business Optimiser
- Business Term Deposits
How it works:
Here are two examples of the Australian Government Deposit Guarantee works.
Personal Account for Jane Smith
|
Account Holder
|
Deposit Type
|
Account Balance
|
|
Jane Smith
|
Savings Maximiser
|
$250,000
|
|
Jane Smith
|
Personal Term Deposit
|
$250,000
|
|
Jane Smith
|
Personal Term Deposit
|
$250,000
|
|
Jane Smith
|
Orange Everyday
|
$5,000
|
|
Jane and John Smith
|
Savings Maximiser
|
$1,000,000 ($500,000 per person)
|
|
Total Deposits for Jane Smith
|
|
$1,255,000
|
|
Amount Guaranteed until 12 October 2011
|
|
$1,000,000
|
|
Amount Not Guaranteed
|
|
$255,000
|
Business Account for XYZ Pty Ltd
|
Account Holder
|
Deposit Type
|
Account Balance
|
|
XYZ Pty Ltd
|
Business Optimiser
|
$500,000
|
|
XYZ Pty Ltd
|
Business Optimiser
|
$250,000
|
|
XYZ Pty Ltd
|
Business Optimiser
|
$250,000
|
|
XYZ Pty Ltd
|
Business Optimiser
|
$100,000
|
|
Total Deposits XYZ Pty Ltd
|
|
$1,100,000
|
Amount Guaranteed until 12
October 2011
|
|
$1,000,000
|
|
Amount Not Guaranteed
|
|
$100,000
|