Deposit accounts

Savings or bank accounts

Just about everybody needs a deposit account to receive pay, pensions and other income and to draw out cash and pay bills. By shopping around, you can find an account that meets your needs.

Is your money safe in the bank?

Choosing a savings or bank account? Transaction fees on your accounts Selecting the right deposit and payment accounts for yourself or changing the way you deposit, withdraw or transfer money may save you money.	Joint accounts Before you choose this option, consider both the risks and benefits. First home saver accounts
Direct debits Direct debits can be an efficient and convenient way for you to make payments, Find out how a direct debit works and what your rights are.	Watch out for emails that pretend to be from your bank ('phishing attacks') Money transfer schemes Read our warnings.

Other financial products that seem like deposit accounts

The financial world has a host of other products you can invest your money in, with the same common fundamental features.

ASIC's role

We regulate disclosure and conduct by banks, credit unions and building societies relating to deposits. We also regulate the activities of firms that lend money to consumers, investors and small businesses: for details, see our section on credit. We regulate deposit taking institutions by:

setting standards about what they tell their customers
monitoring their sales practices and compliance with industry codes of practice
checking customer complaints systems and
investigating and taking action against misconduct.

The Australian Prudential Regulation Authority is responsible for promoting the safety and soundness of deposit taking institutions and the Reserve Bank of Australia, is responsible for monetary policy and the stability of the financial system.

Is your money safe in the bank?

In October 2008, the Australian Government announced a three-year guarantee for deposits in Australian-owned banks, locally-incorporated subsidiaries of foreign banks, credit unions and building societies (institutions known as 'ADIs') The government guarantee is automatic and free for deposits up to $1 million. Deposits of more than $1 million can be guaranteed if your ADI applies, and pays a fee, to the government for the guarantee. If you have deposits of more than $1 million you should discuss whether the guarantee applies and any charge for the guarantee with your ADI.

More information on the government guarantee of deposits

Banks, building societies and credit unions are regulated by APRA and need to meet standards designed to ensure that they are prudently managed.

To check that your financial institution is regulated by APRA call APRA's Contact Centre on 1300 13 10 60. You can also contact APRA by email from their website.

You can also consider contacting a financial planner for some personal financial advice. See FIDO's Getting Advice.

You will find useful information on your financial institution from their annual reports, websites and call centres.

FIDO Website: Printed 01/06/2009