The New Zealand Government has followed Australia in guaranteeing all bank deposits for the next two years.

Prime Minister Helen Clark says she wants to assure New Zealanders their bank deposits are safe.

All mainstream banks, credit unions, building societies and finance companies which accept deposits are covered by the scheme.

It is free for financial institutions with deposits up to $5 billion.

Justin Kerr from New Zealand's Financial Services Federation says it is good news.

"I think the move, together with Australia, is a good thing as far as our two countries are concerned to be seen to be acting together in the same way at the same time," he said.

With less than four weeks until the election, Ms Clark has outlined a detailed spending plan designed to stimulate the economy.

It includes building projects and spending on infrastructure.