Please note the guarantee that is being phased out is the Wholesale Guarantee for Large Deposits - this is for deposits OVER $1 million where a FEE IS PAYABLE to guarantee the funds. It also covers the raising of offshore funds by the banks where they can elect to pay a fee and have their bonds guaranteed.
The FINANCIAL CLAIMS SCHEME which covers deposits up to $1 million with any ADI (Authorised Deposit-Taking Institution) and ensures those funds are guaranteed automatically, and for free, by the Commonwealth Government remains in place until October 2011.
