What is the Depositor Compensation Scheme (DCS)?
The Depositor Compensation Scheme will cover each depositor up to $100,000 per deposit taker (such as banks and non-bank deposit takers, including credit unions, building societies and finance companies) in the unlikely event of failure, when money is held in DCS-protected accounts. The Reserve Bank of New Zealand - Te Pūtea Matua (RBNZ) has a helpful explainer on its website — visit rbnz.govt.nz.
Why is the Depositor Compensation Scheme being introduced?
The Depositor Compensation Scheme is a government scheme funded by deposit takers and administered by the RBNZ. It’s designed to strengthen trust and security in New Zealand’s financial system and align us with the protection available in many other countries.
This cover is great news, and you can also have confidence that New Zealand’s banks, including Kiwibank, are already well regulated to help them handle financial disruption. Read our current credit ratings.
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 Depositor Compensation Scheme?
In the unlikely event Kiwibank was to fail, the following products and accounts would be covered by the Depositor Compensation Scheme, up to a total of $100,000 per depositor. These products and accounts are referred to as DCS-protected accounts.
Please note that a small number of depositors, such as government agencies, are not eligible under the Depositor Compensation Scheme. For more details on the Deposit Takers Act, visit legislation.govt.nz.
Currently offered accounts protected by the Depositor Compensation Scheme |
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Personal |
Business |
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Transactional accounts |
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Savings accounts |
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Investments |
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Any positive balance on Revolving Loans |
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Any positive balance on Credit Cards |
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Accounts with PIE Unit Trust funds 1 Funds in the Kiwibank PIE Unit Trust are protected as the funds are invested in Kiwibank protected accounts. Units are issued by Kiwibank Investment Management Limited (a subsidiary of Kiwibank Limited). |
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Accounts with overdraft facilities 2If an account with an overdraft facility has a positive balance, it will be protected under the relevant transactional account. |
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Accounts no longer offered to new customers protected by the Depositor Compensation Scheme |
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Personal |
Business |
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Transactional accounts |
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Savings accounts |
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Any positive balance on Credit Cards |
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Accounts with overdraft facilities 3If an account with an overdraft facility has a positive balance, it will be protected under the relevant transactional account. |
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How do I find out what accounts I have?
In our mobile app
- Log in to the mobile app.
- Select the account you want to view.
- Tap the 'Detail' tab.
In internet banking
- Log in to internet banking.
- Select the account you want to view.
- Click the 'Account details' tab.
What do I need to do to be covered by the Depositor Compensation Scheme?
There's nothing you need to do. Once the Depositor Compensation Scheme comes into effect (on 1 July 2025), any money you have in DCS-protected accounts will be automatically protected, up to $100,000 per depositor, per deposit taker, in the unlikely event of a failure.
How can I find out more?
Visit rbnz.govt.nz for more information.
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