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Depositor Compensation Scheme
Protecting your eligible NBS deposits.
From 1 July 2025, the Government’s Depositor Compensation Scheme (DCS) protects your eligible deposits – giving you extra peace of mind that your money is safe, even in the unlikely event a financial institution fails.
NBS is a member of this scheme.
The Depositor Compensation Scheme is a Government-backed initiative that provides protection for your eligible deposits up to $100,000 per depositor, per institution if something unexpected happens. It covers deposits at licensed financial institutions like NBS, banks, credit unions, and finance companies.
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 currently not 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
A full list of NBS products covered by the scheme will be available on our website from 1 July 2025.
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 and make sure you’re compensated fairly.
For more information about the Depositor Compensation Scheme, visit the Reserve Bank of New Zealand's website.
You can also download The Reserve Bank of New Zealand's 'Introduction to the DCS' for further information.