The Depositor Compensation Scheme (DCS) is designed to protect New Zealanders’ deposits, or savings. It will take effect from 1 July 2025.
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The DCS covers each customer up to $100,000 per deposit taker in the event of a failure. Deposit takers include banks, credit unions, building societies, and finance companies that take deposits. It only applies to money held in accounts that are protected under the scheme.
The DCS is a Government scheme that’s funded by deposit takers and administered by The Reserve Bank of New Zealand - Te Pūtea Matua.
The DCS will cover anyone who holds their money, or has their money held for them, in a DCS-protected account. This includes transaction, savings, notice, and term deposit accounts.
We are working through the details and will provide a list of all BNZ protected deposits before the scheme takes effect.
The DCS is an extra layer of protection for New Zealanders, and brings New Zealand in line with international best practice.
You may want to check that the contact details we have for you are correct, as well as any other deposit takers you have accounts with.
You don’t need to do anything else - the scheme will kick in automatically from 1 July 2025.
RBNZ has a helpful explainer on their website, including information around what’s covered and not covered, and examples. You can also read their Depositor Compensation Scheme guide (PDF 421KB)