If your bank or credit union suddenly goes out of business.
what happens to your money?
That’s where the Depositor Compensation Scheme (DCS) comes in.
It’s a government safety net designed to protect your savings. It became effective from 1 July 2025, and is administered by the Reserve Bank.
If a deposit taker such as a bank, building society, credit union, or finance company fails, the DCS ensures you’re covered up to $100,000 per deposit taker, as long as your money is in a DCS-protected account.
To get the protection, you should make sure the firm you are lending to is registered as being DSC covered.
The Reserve Bank provides a list of all deposit takers that offer DCS- covered deposits. Go to dsc.govt.nz.
What’s covered?
The DCS automatically applies to a wide range of everyday deposit accounts, including:
- transaction accounts
- savings accounts
- notice accounts
- term
What’s not covered?
Some types of funds fall outside the DCS, such as:
- bonds and other tradable products
- KiwiSaver and other managed superannuation schemes
- foreign currency accounts
- losses from scams or fraud. Certain depositors, such as government agencies, might not be.
The Reserve Bank’s website offers helpful examples of how DCS coverage works in real-life situations.
While most common deposit types are protected, there are exceptions.
To be sure your money is covered, check with your bank or deposit taker.
Financial peace of mind is important. The DCS helps to ensure your savings are safe.
