Lack of private insurance for bank deposits over government limits
💸 moneyproduct problemSingle report ●●●●●
An Australian resident is concerned about the lack of private insurance options to protect bank deposits exceeding the government-guaranteed limit of $250,000, noting that manually splitting large sums across multiple banks is administratively burdensome.
What people do today
- Splitting funds across multiple banks
- Investing in government bonds
- Using money market funds
🔧 Fix this
Ideas a builder, maker or community group could start on:
- A specialized brokerage service that automates the distribution of large deposits across multiple ADIs to maximize government coverage.
- A financial product or 'deposit insurance' wrapper offered by private insurers for high-value cash holdings.
- A policy proposal for a tiered government-backed insurance scheme that allows for higher coverage limits for a fee.
Real voices
“Manually splitting between banks would rapidly become an adminstrative nightmare.”
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