Savings safe as stock markets stumble

Australians can take solace in the fact that all deposits made into savings accounts will be protected, no matter how bad the financial climate gets, Kevin Rudd has claimed.

Following a series of crisis talks with the top brass, the premier has introduced a raft of measures designed to calm the fears of both savers and businesses.

So while savings interest rates may come down in the coming weeks as the rate cut takes effect, customers can be assured that the money they’ve already got locked up in savings accounts and term deposits isn’t going to wither.

In addition to ensuring that savings accounts are secure, the government has also announced that it will double the grant available to all first-home buyers from $7,000 to $14,000 in an effort to give them a boost on to the ladder.

However, Rudd called on Australians to prepare themselves for some tough times ahead.

“This global financial crisis has entered a new and dangerous phase with real consequences for growth, for jobs and, therefore, for the future,” he warned.

Rudd explained that while Australia is better poised than some countries to stave off a recession, the cracks in global financial system have now become so deep that even fairly strong economies such as ours our beginning to experience tremors.ADNFCR-1761-ID-18831945-ADNFCR