Reports have confirmed that as many as 6 major financial companies are all set to opt out of the Government's proposed Retail Deposit Guarantee Scheme. Investors are now being urged to be very cautious if their saving firms decide to opt out as well.

Under the Government's scheme, all the companies taking part in it had to agree to a revised deed, or stop offering guaranteed deposits by December 31.

The 6 major finance companies which have rejected the scheme are - Aotearoa Credit Union, Asset Finances, Christchurch Emergency Services Credit Union, Farmers Mutual Finance, Mutual Credit Finance and Rockforte Finance, and these together hold nearly $84 Million worth of investors' funds.

Bernard Hickey, editor of interest. co. nz, has expressed concerns that it could have an intense impact on the existing customers.

63 other companies, on the other hand, have decided to stay in the scheme which guarantees a minimum of $130 Billion worth of deposits, and was introduced when the global financial crisis was at its worst.