Depositor Compensation Scheme

The DCS protects most common deposit accounts such as:

• Savings accounts
• Term investments
• Notice accounts (not offered by NBS)
• Transactional accounts

Types of deposits not covered by the scheme and not currently offered by NBS include:

• Bonds and other tradable products
• Managed investment schemes (including KiwiSaver and other superannuation schemes that are managed investment schemes)
• Foreign currency accounts

You are automatically covered up to $100,000 per depositor, per institution. This means that if you hold multiple accounts with NBS, your total protection is capped at $100,000.

For example:

• Single account holder: If you have $75,000 in a savings account, you’re fully covered.
• Joint accounts: Each account holder is covered up to $100,000. So, a joint account with $160,000 would be covered for $80,000 per person.
• Sole traders: If your personal and business accounts are under the same name, you’re protected up to $100,000 in total.

No – the scheme is automatic. If your money is in a DCS-eligible account with NBS, you're automatically protected up to the $100,000 limit. There’s no need to sign up or apply.

The DCS is funded by deposit takers, like NBS, and is administered by the Reserve Bank of New Zealand (RBNZ).

If a financial institution were to fail, the scheme ensures that up to $100,000 of your eligible deposits are reimbursed to you. The Reserve Bank of New Zealand (RBNZ) will manage this process of compensating you up to $100,000, if you're eligible.