Deposit guarantee 'has a strong influence on those using bank accounts'

Aussies considering opening new bank accounts with institutions they have not done business with before may be encouraged by the presence of a deposit guarantee, according to one expert.

Andrew Murray, a director of specialist fixed-interest broker Curve Securities, told the Sydney Morning Herald that the guarantee is "still a source of comfort for people".

"That is especially true if they are thinking of putting money with an institution they don't know very well," he asserted.

The expert suggested that investors looking to put their funds into savings accounts or options offering a fixed-interest return are likely to select products that feature a guarantee.

His comments come after the Treasurer Wayne Swan announced that there would be changes to the Financial Claims Scheme, which protects deposits.

The alterations will see consumers get a guarantee for up to £250,000 "per person, per institution".

General manager member services for SGE Credit Union Paul Willis recently told that it is important that Aussies check for any hidden costs before opting for high interest savings accounts or other financial products.

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