The current Retail Deposit Guarantee Scheme ends on 12 October 2010.
Deposits with institutions approved for the current guarantee scheme will no longer be guaranteed by the Crown for any default that happens after 11 October 2010.
A smaller Extended Retail Deposit Guarantee Scheme starts on 12 October 2010, as soon as the current scheme ends. Deposit taking institutions in the current scheme are not automatically covered by the Extended Retail Deposit Guarantee Scheme and it has lower levels of protection.
Under the terms of the Extended Retail Deposit Guarantee Scheme, eligible depositors will be repaid up to a maximum of $250,000 per depositor per non-bank institution, if a participating institution defaults on its obligations. The extension scheme will end on 31 December 2011.
Participation in the extension scheme is voluntary. Institutions that are eligible to participate in the Extended Retail Deposit Guarantee Scheme have until close of business on 11 October 2010 to apply. Seven institutions have been approved so far for the Extended Retail Deposit Guarantee Scheme. They are: Canterbury Building Society, Equitable Mortgages Limited, Fisher & Paykel Finance Limited, MARAC Finance Limited, PGG Wrightson Finance Limited, Southern Cross Building Society, and Wairarapa Building Society.
Further information is available at: Retail Deposit Guarantee Scheme.
Media contact:Angus Barclay | Senior Communications Advisor
Tel: +64 4 917 6146
Mob: +64 (0)27 337 1102