Government Guarantee

DDH Graham Limited (DDH) distributes and administers Money Market Deposit Accounts on behalf of BOQ and Westpac. All functions, powers or actions that DDH perform in relation to the administration of the Account are done in its capacity as an agent of the bank.

By depositing money in a Money Market Deposit Account, you are making a direct deposit with BOQ or Westpac.

Government Guarantee on deposits – Media Release – New permanent financial claims scheme cap

A new, permanent cap will be introduced from 1 February 2012 for the Financial Claims Scheme (FCS) of $250,000 per person per institution, to protect the savings held in around 99 per cent of Australian deposit accounts in full.

This measure, which requires the assent of the Governor-General, reflects the advice of the Council of Financial Regulators and follows wide consultation with industry and consumer groups, which has been taking place since May this year. Most submissions received supported the proposed changes.

It will ensure that we continue to have one of the most generous and secure deposit insurance schemes in the world, and builds on the Government’s record of ensuring our financial system remains among the strongest in the world.

The Government will provide over four months’ notice prior to the introduction of the new cap to allow sufficient time for institutions to communicate the changes to their depositors and transition to the new settings.

Australia’s credit unions, building societies and banks are highly capitalised and have benefited from years of tough supervision by our world-class regulators. Our institutions are very soundly managed by international standards, having developed strong practices of responsible lending and risk management. They are very well funded for the period ahead, and have significantly reduced the amount of funds they borrow offshore as they move to more stable, longer-term funding.

Existing term deposits continue to be covered at the current level from today until 31 December 2012, or until the deposit matures, whichever occurs sooner.  This arrangement will apply to term deposits which existed on 10 September 2011.  If such a term deposit matures before 1 February 2012 and is rolled over, then the new $250,000 cap will apply from 1 February 2012. If such a term deposit matures after 1 February 2012 and is rolled over, then the new $250,000 cap will apply from the rollover date.

The Financial Claims Scheme applies to all authorised deposit-taking institutions, including Bank of Queensland’s Money Market Deposit Account, managed by DDH Graham Limited.  Additional information on the FCS can be found on the APRA website at http://www.apra.gov.au or through the APRA hotline on 1300 55 88 49.