ABA highlights safety of Aussie bank accounts

Mozo

Tuesday 13 September 2011

The Australian Bankers' Association (ABA) has highlighted the safety of banks in the country, news that may encourage Aussies considering opening a high interest savings account.

Safety of banks highlighted by ABA

Steven Munchenberg, chief executive of the ABA, asserted that the federal government's financial claims scheme (FCS) gives savers an "additional layer of insurance" regarding their money.

He reassured consumers that all banks in the country are regulated properly and closely supervised by the Australian Prudential Regulation Authority.

"While the FCS provides an additional safeguard, we should remember that no depositor has lost a material amount of a deposit in an Australian bank since 1890," he noted.

His comments come after treasurer Wayne Swan announced that a new cap of $250,000 per depositor per bank will be put in place in February next year.

This comes after Bell Potter Securities adviser John White told the Chronicle that putting funds away in savings accounts represents a sound financial strategy.

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