If a bank is paying 8% for anything in this time of rates, they are taking enourmous risks. I am talking headge fund or atleast direct stock investments.
Supposedly interest rates in Aus are a lot higher than in the west. Many are claiming their banks offer 4-6% for savings accounts, for example. I'm not familiar with their insurance policies though.
I would take my money out of the bank if they started to offer this, the old saying rings home something to good to be true. Sounds to me like there is about to be a massive crash offering them rates. Obviously that is of course you friend is telling the truth and they are but either way that is the alarm to get the dollar out of there and invest in something like gold/silver.