Just in case.......

[MrBurns]

In theory, if you had say $500k on term deposit with a bank and you were just a little worried that the next few weeks might trigger a small run on our banks.
What would you do ? what's safer than money on term deposit ?
Govt bonds? ???

 

[Garpal Gumnut]

In theory, if you had say $500k on term deposit with a bank and you were just a little worried that the next few weeks might trigger a small run on our banks.
What would you do ? what's safer than money on term deposit ?
Govt bonds? ???

Under the bed mate.

gg

 

[trinity]

What is the "insurance" amount for deposits? I was just trying to look it up in Australian Bankers Association but, haven't quite found it yet.

http://www.bankers.asn.au

Any other links that I should be looking at?

Thanks.

 

[korrupt_1]

Under the bed mate.

gg

what if your house burns down?

actually... isn't all money in banks are 100% backed by the government?

 

[nunthewiser]

spend it all on loose woman and fast cars i reckon

 

[nunthewiser]

what if your house burns down?

actually... isn't all money in banks are 100% backed by the government?

NO.

 

[korrupt_1]

geeze... so if your savings isn't guaranteed... where the hell could u stick it safely?

maybe cash it out and get a disaster proof safe?

 

[gav]

spend it all on loose woman and fast cars i reckon

now thats a plan i like the sound of!

 

[lesm]

what if your house burns down?

Put it in an old tin can or two and bury it in the backyard.

 

[Greg71]

Correct me if my information is inaccurate, but your money on term deposit is used by the bank to lend multiple amounts of it out to borrowers, I'm told up to 30-odd times depending on which bank, through fractional reserve banking.

So when you withdraw your term deposit, wouldn't that be screwing the banks? They'd have money on loan, that doesn't exist, against your money that you've withdrawn.

If everyone that had savings in the bank, suddenly went in and withdrew, what would happen in this modern day?

Zeitgeist explains how the bankers purposely did it last century and caused many banks to close down. Could what's now happening, with the US debt climbing etc. be the modern-day version?

 

[trinity]

Re: Just in case.......
Quote:
Originally Posted by korrupt_1 View Post
what if your house burns down?

actually... isn't all money in banks are 100% backed by the government?
NO.

so, how much is guaranteed?

 

[CanOz]

Correct me if my information is inaccurate, but your money on term deposit is used by the bank to lend multiple amounts of it out to borrowers, I'm told up to 30-odd times depending on which bank, through fractional reserve banking.

So when you withdraw your term deposit, wouldn't that be screwing the banks? They'd have money on loan, that doesn't exist, against your money that you've withdrawn.

If everyone that had savings in the bank, suddenly went in and withdrew, what would happen in this modern day?

Zeitgeist explains how the bankers purposely did it last century and caused many banks to close down. Could what's now happening, with the US debt climbing etc. be the modern-day version?

Absolutly, this could happen, a 'run' on the banks. The level of panic would need to be much higher.

I moved money out of my Citi Bank broker account yesterday because i wanted some better interest at Pestpac...but its good feeling that its out of Citi

CanOz

 

[Julia]

actually... isn't all money in banks are 100% backed by the government?

Although deposits are not guaranteed, in reality I'd be very surprised if any of the big four were allowed to fail.
That said, I'd rather have any large deposits in CBA than ANZ right now.