We’re keeping a watching brief on the government’s retail deposit guarantee scheme.
One crucial difference between the current scheme and the extended scheme (which will take effect in October 2010) is that cash PIE funds won’t be included in the extended scheme.
Even cash PIEs that are part of the current guarantee scheme won’t be eligible to apply for inclusion. This is likely to cause a flood of investors back to guaranteed deposits next year.
Regardless of whether you invest in cash PIEs or other fixed-interest investments, you’ll need to check with the institutions themselves if you intend to invest with them beyond October 2010.
Institutions will be able to offer both guaranteed and non-guaranteed investments. So don’t just ask if the institution is part of the extended guarantee scheme – check that the investment you intend to make is covered too.
More from consumer.org.nz
- Deposit guarantee extended - our September 2009 news report explaining the guarantee extension
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