Depositor Compensation Scheme

The Depositor Compensation Scheme (DCS) is planned to come into effect from July 2025, offering an extra layer of protection and peace of mind for Kiwi. Find out how it will work and what it will mean for you.

What is the Depositor Compensation Scheme (DCS)?

The DCS will protect up to $100,000 per customer (eligible depositor) if a New Zealand deposit taker — such as a bank, credit union, or finance company — fails. The DCS is also known as a deposit insurance scheme. The Reserve Bank of New Zealand - Te Pūtea Matua (RBNZ) has a helpful explainer on its website — visit rbnz.govt.nz.

Why is the DCS being introduced?

The DCS aims to strengthen trust and security in New Zealand’s financial system and will align us with the protection available in many other countries.

This new protection is good news, but rest assured that New Zealand’s banks, including Kiwibank, are already well-capitalised and prepared to handle any financial disruptions.

New Zealand has one of the world’s most trusted and secure financial systems."
Reserve Bank of New Zealand - Te Pūtea Matua website

Which Kiwibank accounts will be covered by the DCS?

The details are being finalised, but we expect the following types of accounts, including portfolio investment entity (PIE), will be covered by the DCS, up to $100,000 per Kiwibank customer (eligible depositor) if we fail:

  • Personal banking: transactional, call accounts, savings accounts and term deposits
  • Business banking: transactional, call accounts, savings accounts and term deposits.

What do I need to do to be covered by the DCS?

You don’t need to take any action. Once the DCS comes into effect, any money you have in Kiwibank accounts covered by the DCS will be automatically protected, up to $100,000 per customer (eligible depositor) in the event of a failure.

Is the DCS known as anything else?

The Depositor Compensation Scheme may be referred to by different names, but they all refer to the same scheme. Here are a few other terms you might come across:

  • Deposits Compensation Scheme, Deposits Compensation or Deposits Scheme
  • Deposits Insurance Scheme, Deposit Insurance or Deposit Scheme
  • RBNZ Insurance Scheme, RBNZ Deposit Compensation or Reserve Bank Compensation Scheme
  • Deposit Guarantee, Deposits Guarantee or Deposit Compensation Guarantee.

How can I find out more?

We'll update this page as soon as we have more details or visit rbnz.govt.nz for more information.

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