About DCS cover
The Depositor Compensation Scheme (DCS) protects depositors up to $100,000 if your deposit taker fails. Coverage is automatic if your money is in a DCS-protected account.
View the list of deposit takers offering DCS-protected deposits. These deposit takers are required to maintain a list of DCS-protected deposits on their website.
What's not covered?
Some money is not protected by the DCS, including money held in:
- Bonds and other tradable products
- KiwiSaver and other superannuation schemes that are managed investment schemes
- Foreign currency accounts
Money lost as a result of scams or fraud is not covered by the DCS.
Some depositors are not eligible for the DCS, including government agencies (PDF, 369KB).
While most deposits will be covered by the scheme, there are some exceptions. Speak with your deposit taker if you’re unsure whether your money is protected by the DCS.
Coverage for specific account types
Some banks offer cash and term PIEs that invest only in debt of that bank. These may be covered by the DCS. We recommend checking your deposit taker’s website or asking your deposit taker to confirm. All deposit takers are required to have a list of protected deposits on their website.
Children’s accounts are protected in the same way as any other eligible depositor, with the $100,000 coverage limit applying across any DCS-protected accounts held in their name.
If your child’s accounts are not set up in their own name, for the purposes of calculating compensation they will be treated as a single depositor with whoever's name the account is in.
Speak with your deposit taker if you are unsure whether your child’s deposits are held in their name.
Relevant arrangements are defined in section 191(2) of the DTA. Relevant arrangements include situations like money held by lawyers, accountants or real estate agents on behalf of clients. For the purposes of the DTA, the provider of a relevant arrangement is not entitled to compensation (see section 208 of the DTA). Rather, compensation entitlement is calculated at the level of the underlying client.