Further to the recent media announcements on the guarantee of deposits by the Australian Federal Government, BankWest have clarified the status of the CMC Markets Cash Account with the following:
In summary,
- Deposits held within BankWest (including those held by clients in the CMC Markets Cash Accounts) are covered by the scheme.
- There is no cap on the amount of deposit covered by the scheme
- The guarantee applies immediately for a three year period.
Deposit Guarantee
- On 12 October 2008, the Australian government announced deposits in Australian banks will be guaranteed.
- BankWest is covered by this guarantee.
- Prime Minister Kevin Rudd has said Australian banks are well regulated and capitalised and the guarantee has been introduced to increase consumers' confidence their deposits are safe in Australian banks.
- There is no cap to the guarantee as previously proposed by the Government. (In June of this year the Government announced the introduction of the
Financial Claims Scheme (FCS). This scheme was devised to protect deposits to the value of AU$20,000 per person. The Prime Ministers
announcement on the 12th of October extends the remit of this guarantee to now cover all deposits regardless of size.)
- All Australian banks are highly regulated by the Australian Prudential Regulation Authority (APRA).
- BankWest is a member of the HBOS Australia group, owned by HBOS plc in the UK.
- HBOS plc has agreed to sell its BankWest businesses to the Commonwealth Bank of Australia (CBA) which will increase BankWest's strength as a financial institution in Australia.
Questions and Answers
Who is covered by the guarantee?
Individuals and corporate depositors with Australian banks, building societies and credit unions are covered by this guarantee.
The guarantee applies to all types of deposits, regardless of the type of account through which the deposit is made. For example, it includes savings accounts, Money Market Accounts, passbook accounts, cheque accounts, pensioner deeming accounts, term deposits, mortgage offset-accounts, farm management accounts, first home savers accounts and retirement savings accounts. Both retail and wholesale deposits are covered by the guarantee.
How much does the guarantee pay?
Customers receive all their funds from the government.
If I deposit my money with BankWest, will I be entitled to the guarantee offered by the government?
Yes, your deposit in BankWest is covered by the Australian Government’s guarantee.
How long will the guarantee be in place?
The guarantee will be in place for three years effective immediately and will be reviewed at the end of that period of time.
Will there be any cap or limit to the guarantee?
For the period of time that the guarantee is in place there will be no cap or limit to the guarantee.
How does the recent acquisition announcement affect the guarantee for BankWest or St Andrew's customers?
All BankWest customer deposits are covered by the guarantee regardless of the acquisition.
Why is the Government extending the FCS guarantee now?
The Australian banking system continues to demonstrate its resilience to the international financial market turbulence. In recent days Governments around the world have taken steps to guarantee the liabilities of their financial systems.
European Governments (Ireland, Germany, Denmark and Iceland) have moved to insure 100 per cent of eligible deposits. Other jurisdictions have significantly increased their deposit insurance caps.
Having carefully reviewed international developments, the Australian Government, acting on the advice of the regulators, has decided that it must act to provide the same guarantees for our banks and other financial institutions.
If you have any further queries please contact Bankwest's Client Services Team on 1300 769 687.
