What i mean is, i have 400k in ASB. out of which 200k is principle, and 200k is dividends (ie:10 years of dividend).

the fund will keep on growing, however, the principle is capped at 200k. hence it is "limit" in a sense i cant move cash anymore INTO the account.

u will still get dividends tho. there is no limit how big an account can be, just that principle limit is 200k.

like for example, ASB2 also 200k in principle, but only 3k in dividends so 203k now. so despite only 203k in ASB2, it is "limit" in a sense i cant add anymore cash into it too.

principle limit is always 200k.