Banks advise on deposit fee avoidance

Westpac and National Australia Bank have been advising wealthy customers to establish deposits under different business names to avoid the fees associated with the federal government deposit guarantee after the 28th November. From that date the government will charge a fee for the guarantee on deposits over $1 million. Customers can avoid the fee without shifting some of their funds to another bank, by splitting their savings into deposits under different business names, according to sources within the banks. The two banks have apparently been advising customers that accounts held in different names, even if they are owned by the same person, will not attract the fee.

Source: Herald Sun