Raboplus' and citibank's deposits guaranteed?

Discussion in 'Money Management & Banking' started by Godfather, 12th Oct, 2008.

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  1. Godfather

    Godfather Member

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    Hi there,

    I am looking forward to australian government approving a law for deposit protection. I think that the lack of some kinds of deposit protections in this country with a strong economy can partially explain the collapse of the AUSD in the last few days...:(

    Query: do you think raboplus' accounts could be covered up to 100K Euro (=approx 200K AUSD) under the dutch deposit protection scheme? And aren't citibank Australia covered up to 100K USD (=around 150K AUSD) under the american protection scheme?

    I've sent a couple of e-mails to both rabo and citi. I'm hoping to get an answer from them as well that I'll share here...

    Cheers!
     
    Godfather, 12th Oct, 2008
    #1
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    I think you'll find that the Australian operations of these banks fall under the Australian prudential authority and regulation mechanisms ... the bank accounts would be domiciled in Australia rather than overseas.

    I'd be very surprised if it were otherwise.
     
    Simon Hampel, 12th Oct, 2008
    #2
  3. Godfather

    Godfather Member

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    Hi Sim,

    ...Not sure but I'd be very surprised if they are not protected! In Ireland Rabodirect (irish version of raboplus) introduced the dutch deposit protection scheme earlier than the loval government introduced the 100K and then full deposit protection for some of the banks:
    Savings :: RaboDirect Online Savings & Savings Account Ireland. Try Our Savings Calculator!

    And when Northern Rock was collapsing before nationalization the UK extended the english deposit protection to NR Ireland as well.

    Can't foreing banks have different ways of protecting local deposits?:confused:
     
    Godfather, 12th Oct, 2008
    #3
  4. AsxBroker

    AsxBroker Well-Known Member

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    Hi GodFather,

    The USD/AUD fell due to interest rates falling, bank deposits being government guaranteed or not had nothing to do with it. If you look over the last few years, each time the RBA interest rate rose, the USD/AUD rose a little bit. Now that the RBA has dropped interest rates, the USD/AUD decreased.

    Cheers,

    Dan
     
    AsxBroker, 12th Oct, 2008
    #4
  5. Godfather

    Godfather Member

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    Thank you Asxbroker!:)
     
    Godfather, 12th Oct, 2008
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  6. Godfather

    Godfather Member

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    Hi Asxbroker, now that K. Rudd has guaranteed all the deposits I want to check if my theory on the exchange rate was right! :D I'll keep checking it in the week to come! I'm expecting the AUSD to go below 1.90 against 1 Euro for sure! ;)

    ...But I agree that the interest rates played a huge part into last weeks exchange rates... :)
     
    Godfather, 12th Oct, 2008
    #6
  7. Simon Hampel

    Simon Hampel Founder Staff Member

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    Just as an update on this - statement from ING Direct:

    From RaboPlus:

    From Citibank:

     
    Simon Hampel, 23rd Oct, 2008
    #7