New Zealanders’ bank savings need protecting

The Green Party is calling on the National Government to introduce sector-wide deposit insurance following Kiwibank’s withdrawal of its deposit guarantee.

Kiwibank announced to its customers yesterday that its deposit guarantee on savers’ money was ending on 28 February 2017. After February, no bank in New Zealand will offer protection of savers’ deposits.

“New Zealand is the only country left in the developed world that doesn’t offer savers’ deposit insurance to protect them against possible loss if their bank ever got into difficulty,” said Green Party Co-leader James Shaw.

“Savers in New Zealand face a possible ‘haircut’ to their savings if their money is needed to bail out their bank. This can’t happen anywhere else in the rest of the OECD.

“Australian and American savers enjoy deposit protection of their savings up to AUD$250,000. Canadian and European deposits are insured up to $100,000.

“We think $100,000 would be a fair level of protection for savers here too.

“Deposit insurance would also support the resilience of our financial system, stopping the likelihood of a bank run, which is a real risk according to the OECD.

“The absence of deposit insurance makes it politically difficult to avoid a taxpayer-funded bank rescue.

“Deposit insurance would cost savers around $5-10 a year to fund.

“Five to 10 dollars is a small price to pay to know that your savings are safe no matter what,” said Mr Shaw.

 

Action

Join our call to stop funding fossil fuels!

Take Action

Action

Virtual Events

We have activists across Aotearoa / New Zealand who are working hard to build a brighter future for our kids and grandkids. This page lists upcomin...
Take Action

Action

Support our Climate Action Plan for bigger bolder climate action

We agree with all five of the School Strike for Climate's demands. Read more and sign the petition.
Take Action

Action

Show your support to end housing inequality

New Zealand’s housing market is becoming increasingly divided between people who own their own homes and those forced to rent for life...
Take Action

Latest Finance Announcements

Story

Green Budget win backs public sector leadership on climate change

The Greens in Government have today won a significant investment to help move the public sector estate onto clean, renewable energy, Green Party Co...
Read More

Story

Budget 2019 Speech - James Shaw

E te Māngai o te Whare, tēnā koe. Ki a koutou ōku hoa Pāremata, huri noa i te Whare, ngā mihi o te tau hou ki a koutou katoa. 1.         The Wellbe...
Read More

Story

Green Party welcomes first Wellbeing Budget

“The Green Party is proud to welcome New Zealand’s first Wellbeing Budget to deliver change for New Zealanders,” Green Party Co-leader James Shaw s...
Read More

Story

Wellbeing: We need to change how we see our economy

“The Wellbeing Budget is a first step in changing the way we look at the economy and our place in it”, said Green Party Co-leader Marama Davidson. ...
Read More

Story

New Zealand needs a Fairer Tax System

“We’ll continue to work with Labour to make our tax system fairer,” Green Party Co-leader James Shaw said today following the Government response t...
Read More

Story

Green Party welcome Tax Working Group report

The Green Party welcomes the Tax Working Group report, which lays out a plan to ensure taxation in Aotearoa is fair and enhances the wellbeing of a...
Read More