The Reserve Bank of New Zealand has launched the Deposit Compensation Scheme (DCS), introducing automatic protection for retail deposits held with licensed deposit takers in New Zealand. Coverage applies from 30 June 2025 for money held in standard banking products including transaction, savings, notice, and term deposit accounts. The scheme applies to banks, credit unions, building societies and finance companies that take retail deposits, and protects eligible depositors including individuals, businesses and trusts. Established under the Deposit Takers Act 2023, the DCS is managed and administered by the Reserve Bank and funded through levies on industry. Investments such as KiwiSaver, bonds and shares are excluded, and the scheme does not protect against frauds or scams; deposit takers will list their DCS-protected products on their websites, alongside information and a list of participating deposit takers published by the Reserve Bank.
Reserve Bank of New Zealand 2025-06-30
Reserve Bank of New Zealand launches Deposit Compensation Scheme covering standard retail deposit accounts
The Reserve Bank of New Zealand has launched the Deposit Compensation Scheme (DCS) to provide automatic protection for retail deposits held with licensed deposit takers, effective 30 June 2025. The scheme, established under the Deposit Takers Act 2023, covers standard banking products but excludes investments like KiwiSaver, bonds, and shares, and is funded through industry levies.