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All the above is WRONG. The BANK issues a bank bill when it lends to a customer who borrows. The borrower pays a FIXED RATE incl of margins etc. The bank then sells the bill to an investor. They will sell it as a market based rate....ie They lend at say 8.5% and sell at 4.7%. The investor can...

Govt bonds ARE covered. They are sovereign debt and already a Govt guaranteed debt on demand on the maturity date. They arent insured as it is like Suncorp insurance taking out a policy with Suncorp. Bonds are insured for their full face value in general terms. No limit. Hundreds of millions or...

I missed the govt deposit guarantee issue... Yes not covered. Only insured deposits of up to $250k per bank per person is...You know your super fund isnt insured either !! The guarantee is a load of fluff intended to give confidence. The reality is customers are losing the fee APRA charge as a...

A term deposit has a fixed term and a fixed earning rate usually around 0.90% above the bank bill rate. If you wish to break a TD the bank will heavily penalise that choice. The earning rate could be as low as 0.01%. Break costs can be ibncurred even where the bank doesnt incur a cost (Dont...

A bank bill is just a securitised loan. The bank issues the bill to raise the $$ to lend. The bank owns the bill and sells it to an investor who holds onto it as a negotiable instrucmnet. On maturity they can demand the face value...Usually interbank rate or slightly aboveas its a bank "cash...