What is the Depositor Compensation Scheme (DCS)?
The Depositor Compensation Scheme is a government scheme created under the Deposit Takers Act, which was passed into law in July 2023.
The DCS will protect up to $100,000 of each customer's money held in each bank, credit union, building society or finance company.
DCS is funded by deposit takers and administered by the Reserve Bank of New Zealand – Te Pūtea Matua (RBNZ).
Why is the DCS important?
If a New Zealand deposit taker fails, the DCS provides depositors with compensation of up to $100,000.
You don’t need to do anything to be protected by the DCS if your money is held in DCS-protected accounts; cover automatically comes into place on 1 July 2025.
When does the DCS come into effect?
The DCS comes into effect on 1 July 2025.
What money is covered by DCS?
Your money is automatically protected if it is in a DCS-covered account, such as:
- Transaction accounts
- Savings accounts
- Notice accounts
- Term deposits
What isn’t covered by the DCS?
Some money is not protected by the DCS, including money held in:
- Bonds and other tradable products
- Managed investment schemes (including KiwiSaver and other superannuation schemes that are managed investment schemes)
- Foreign currency accounts
Which Police Credit Union accounts will be covered by the DCS?
From 1 July 2025, the below PCU accounts currently offered to members will be protected by the DCS. This is not an exhaustive list and will be finalised before 1 July 2025.
Account Type |
PCU accounts currently offered to new members |
PCU accounts no longer offered to new members |
Transactional accounts |
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Savings accounts |
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Investments |
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Accounts with overdraft facilities with a positive balance |
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Find out more
The Reserve Bank of New Zealand provides depositors with information and resources on the Depositor Compensation Scheme.