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Protecting your money with the Depositor Compensation Scheme

The Depositor Compensation Scheme (DCS) will protect your money if a bank, building society, credit union or finance company fails.

About the DCS

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Covers customers for up to NZ$100,000 per customer, per deposit taker, if the deposit taker fails.

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Covers customers of banks, building societies, credit unions and finance companies registered or licensed in New Zealand.

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Planned to come into effect from mid-2025.

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Backed by the Deposit Takers Act 2023 - new legislation that strengthens our ability to supervise the financial system and act more quickly if a deposit taker is in trouble. 

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Will be funded by New Zealand deposit takers.

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Will increase trust and security in the financial system that fuels our economy.

Deposit takers are also known as banks, building societies, credit unions and finance companies.

Accounts that are likely to be covered


We anticipate these accounts will be covered by DCS.

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What's covered

  • current accounts (sometimes called transactional or call accounts)
  • savings accounts
  • term deposits.

These deposits must be held with a bank, building society, credit union or finance company registered or licensed in New Zealand.

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What's not covered

  • bonds and other tradeable products
  • managed investment schemes (including KiwiSaver and other retirement schemes).

When and how will I receive cover?

We have reviewed depositor compensation schemes available overseas. The best practice is to pay customers within 7 to 10 days of a deposit taker failure. In the unlikely event a New Zealand deposit taker fails, we will let you know how to make a claim if you’re protected.

Our role and working with deposit takers

The Reserve Bank of New Zealand – Te Pūtea Matua protects and promotes financial system stability so that it can withstand shocks to our economy and provide the financial products and services we rely on. Our financial system is one of the world’s most trusted and secure. As kaitiaki of the financial system, we set the rules that guide deposit takers on their soundness. We also monitor and sanction deposit takers if they put their customers and the wider financial system at risk.

We are working with deposit takers to develop regulations and standards they will need to follow. Deposit takers are providing useful feedback on how the DCS will work in practice for their customers. As the DCS is established, New Zealanders will start to see more information from their deposit taker, who will publish on their websites a list of the deposits that are protected and covered by the DCS should they fail. There will also be information on our website.

Looking for more information?

Visit www.rbnz.govt.nz/dcs

Remember to keep your contact details up-to-date with your deposit taker.

Disclaimer

The Reserve Bank of New Zealand – Te Pūtea Matua cannot provide financial advice. We suggest you talk to your financial institution or seek independent advice from a registered financial adviser.

How do I find an adviser? | Financial Markets Authority (fma.govt.nz)