In the UK, the deposit guarantee is only £50,000 but the issue they have had to address is still relevant to Australia: what happens to existing customers with savings in two merging organisations who may find that their combined deposits in the successor institution exceeds the maximum deposit guarantee limit?

The UK Financial Services Authority has introduced a rule change which enables a building society which merges with another building society to keep its separate depositor protection compensation limit providing the merging society continues to operate the business of the merged society under its former name.

This is now another issue to address in considering the effect of a merger.