As a result of the extraordinary circumstances in global financial markets, the Australian Federal Government has announced it will guarantee all bank deposits held in Australian-owned banks, Australian subsidiaries of foreign-owned banks, building societies and credit unions.
As an Australian subsidiary of a foreign-owned bank, we would like to assure all of our clients that all their deposits held with Citigroup Pty Limited ("Citibank Australia") will also be covered by this protection.
Following further clarification from the Australian Federal Government, after 28 November 2008 customers with deposits greater than $1 million will have the option to take advantage of the Government’s deposit guarantee for a fee of 0.7%. All deposits within Citibank Australia remain guaranteed (free of any fee) until 28 November 2008.
As a result of Citigroup Pty Ltd’s strong credit rating our customers benefit from the lowest fee offered by the Government of 0.7%.
There are a number of aspects of the deposit guarantee process which require further clarification. Citibank is working with the Government and associated regulatory bodies to deliver the most up-to-date information and clarity to our clients.
What deposits are covered?
The guarantee is effective immediately and will operate for a period of at least three years.
The guarantee applies to all types of deposit accounts. For example it includes, transaction accounts, savings accounts, term deposits and mortgage offset accounts.
The guarantee applies to deposits held by all types of legal entities in Australia, including individuals (including joint accounts), partnerships, businesses, trusts and government entities.
The guarantee applies to deposits denominated in any currency.
From 28 November 2008 customers with deposits greater than $1 million will have the option to take advantage of the Government’s deposit guarantee for a fee of 0.7%. All deposits within Citibank Australia remain guaranteed (free of any fee) until 28 November 2008.
Foreign bank branches will also be able to access the deposit guarantee for domestic deposits held by Australian residents, but with no fee-free threshold. Australian residents with deposits issued by Citibank N.A Sydney Branch will be eligible for this cover.
As the first foreign bank to receive a banking license in Australia in 1985, Citibank Australia provides financial services to more than one million valued Australian consumers.
Citibank Australia's credit ratings are among the best in the world. Citibank Australia is rated by Standard and Poors as AA long term and A-1+ short-term. These ratings are comparable to those of the major Australian banks. These ratings demonstrate our financial strength and the security of banking with us.
This means when you bank with Citibank Australia, you're banking with one of the world's preeminent financial services companies in one of the strongest banking environments in the world.
We hope this information is useful and we look forward to working with you in all your future banking needs. Citibank Australia has 10 branch locations across the country. For further information, please feel free to drop into a Citibank branch or contact 13 24 84 to speak to a Citibank representative.
