Macquarie Bank will cover all its retail bank deposits regardless of the size of the investment, at no additional cost to depositors.

The bank will also extend the guarantee to the underlying wholesale bank deposit of the Cash XL fund, at no additional cost to Cash XL investors, until further notice.

The Macquarie Cash Management Account (CMA), available from November 28, will also be covered.

"It will meet the needs of clients who want a high level of functionality and who also require their investment to be covered by the guarantee," Macquarie Banking and Financial Services Group head Peter Maher said.

He said Macquarie's clients were the group's most important assets and it was important to provide them with choice and certainty.

"We are continuing to work with the relevant government, regulatory and industry bodies to assist them in their review process."

The decision comes after the announcement in October that, under the Federal Government Guarantee from November 28, 2008, deposits up to $1 million will be guaranteed for three years.

Under the scheme deposits above $1 million will incur a fee the amount of which will be determined by the maturities for eligible securities and their respective credit ratings.

"This fee will ensure the deposit and wholesale funding guarantees apply in a consistent manner for larger investments, for which deposits and securities are interchangeable," the Treasurer Wayne Swan said previously.