This was noted here back in August: The banks seem to be expecting trouble Now I see Commonwealth Bank have this notice on all term deposits: "31 days notice is required to withdraw from this account before maturity". I imagine your money would be up in smoke if there was a bank run. Who still thinks term deposits are a good idea after this? And what's the alternative if you want yield?
The rules have changes thanks to the bail in at the G20. Depositors and share holders are both treated the same if the bank goes down. You might get enough for a haircut. Regards Errol 43
If you imagine a bank holiday of a couple of weeks before you can apply the 30 day rule, you'll certainly be the last cab off the rank. I'm still hurting from the Cyprus fiasco, so all stackers are only one degree of separation from the banksters.
I'm starting to feel like its a wealth transfer from the future (when depositors lose their money) to the present for those who are benefitting from the setup.
When depositors are sucked dry, and super has been raided, the government will be looking for the next easy target. Maybe bullion taxes and confiscation?
It's a more open recognition of the problems with fractional reserve banking. (Ignoring the role of central banks) FRB is not a bad thing if people actually understand the risks but generally people don't. They think their on-demand savings are theirs to be withdrawn on-demand (crazy bastards ) or that their term deposits are still deposits but with a higher interest rate and stricter withdrawal conditions rather than being co-investors in the whole business enterprise. I want the FRB system to openly acknowledge its risks and not rely on bailouts or pretend Govt insurance schemes. Abolishing the Reserve Bank would be the crowning glory IMO. It is a banksters wet dream but it is either pointless or destructive for the general public and provides no real benefit to us.
For anyone interested, here is a link to a PDF the goes into detail regarding Commonwealth bank Term Deposits rule changes. It was posted on the 8th December 2014. https://www.commbank.com.au/personal/apply-online/download-printed-forms/TermDeposit_ADB202.pdf Looks very clear cut, seems they are worries about a bank run. Page 2 under Key Risks Page 4 Page 6 And there is more info in the PDF
TBH, I don't really see the issue since it's for term deposits and you're making an agreement with the bank to deposit the money for an agreed period of time. You (generally) get a higher rate of interest because it isn't supposed to be a flexible arrangement where you can just pull the money out again at will. Use a high interest at-call account instead. There are plenty of them on offer these days.
