terms deposits are unsecured.
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But what about standard accounts? I just called them up and couldn't get a straight answer although the person I was talking to was not knowledgeable on the topic.
I'm kind of tempted to take a chunk out as physical cash and just keep it at home. Perhaps I'm being a bit too paranoid.
at the moment all deposits in bank accounts will take a haircut if bank fails. the govt was meant to introduce deposit insurance this year of 50k but it hasnt passed parliament yet
https://www.interest.co.nz/banking/1...-under-phase-2
https://www.stuff.co.nz/business/118...or-new-zealand
I think over $50K (in one bank) they will raid it to fund the banks over reliance on housing, isnt that nice. As I understand Aussie has it up to $250k.
From reading that it would be prudent to split between multiple banks (each at/below $50K ) or send to Australian accounts.
Time will tell if you are paranoid or not but my understanding is there are no guarantees. The govt (taxpayers) stepped in and guaranteed everything in the GFC but this is what we have now.
https://www.rbnz.govt.nz/regulation-...ank-resolution
Keep in mind on the bank balance sheet you are an unsecured creditor so hopefully it goes borrowers first as they lose when forced to sell their security, creditors (you) might get first bite of any funds then bondholders (or it might be bondholders first, not sure) then shareholders get whatever is left (if anything).