NZ Deposit Guarantee Scheme Explained

The New Zealand Deposit Guarantee Scheme provides important protection for bank depositors. Here's everything you need to know about how it works and what it covers.

Key Facts

Coverage: Up to $100,000 per depositor per institution
Status: Now in effect (as of 2024)
Covers: Registered banks in New Zealand

What is the Deposit Guarantee Scheme?

The Depositor Compensation Scheme (DCS) is New Zealand's deposit insurance scheme, managed by the Reserve Bank of New Zealand (RBNZ). It protects eligible deposits up to $100,000 per depositor, per licensed deposit taker.

What's Covered?

The scheme covers:

Savings accounts
Term deposits
Transaction accounts
On-call deposits

What's NOT Covered?

The scheme does not cover:

Deposits over $100,000 (the excess is not protected)
Finance company deposits
Credit union deposits (unless the credit union becomes a registered bank)
Investment products like shares, bonds, or managed funds
Foreign currency deposits

Which Banks Are Covered?

All registered banks in New Zealand are covered. This includes:

The Big 4: ANZ, ASB, BNZ, Westpac
Kiwibank
Rabobank
Heartland Bank
SBS Bank
TSB Bank
The Co-operative Bank
And other registered banks

How Does the $100,000 Limit Work?

The limit is per depositor, per institution. This means:

If you have $150,000 in one bank, only $100,000 is protected
If you have $100,000 in ANZ and $100,000 in ASB, both amounts are fully protected
Joint accounts are treated separately from individual accounts

Strategies for Deposits Over $100,000

If you have more than $100,000 to deposit:

Spread across banks: Deposit up to $100,000 with each institution
Use joint accounts: Joint account holders may get separate coverage
Consider other investments: Government bonds, KiwiSaver, or managed funds for amounts above $100,000

What About Finance Companies?

Finance companies are NOT covered by the deposit guarantee scheme. While they often offer higher interest rates, they come with more risk. See our guide on finance company deposits for more information.

Find Protected Term Deposits

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Learn More

For official information, visit the Reserve Bank of New Zealand website.