Aussies don’t know about deposit guarantee

Only one in eight Australians consider combined credit unions and building societies to be very secure for their cash deposits, according to a survey conducted by CoreData.

Half of the respondents surveyed considered the big four banks to be very secure. While Australian investors felt more comfortable investing with the larger banks during the GFC, one quarter were unaware of the Federal Government’s deposit guarantee and most respondents had only some idea of what it was.

“The guarantee sought to slow the flight of investors towards the big four banks at the expense of the smaller players, but clearly the Government’s move to stabilise the system failed to resonate with consumers with a dramatic effect on competition,” CoreData Principal Andrew Inwood said.