Depositor Compensation Scheme to protect your money
It’s rare for banks to fail. But if the worst happens, you could be eligible for compensation of up to $100,000. Find out how the Depositor Compensation Scheme protects your money.
About the Depositor Compensation Scheme
From 1 July 2025, your money will be protected if your bank or other deposit taker goes out of business.
The government’s Depositor Compensation Scheme will pay eligible customers up to $100,000 each if their bank fails. The scheme also includes non-bank deposit takers, e.g. building societies, credit unions, and financial companies that take retail deposits.
How you’ll be protected
You don’t need to do anything to be protected. From 1 July 2025, all eligible new and existing deposits will be automatically covered, including:
- Everyday and savings accounts
- Term deposits
- ANZ PIE Fund (Term Option and Call Option)
- Credit cards with positive balances (no money owing)
- Flexible home loans with positive balances (no money owing).
Strong and safe financial system
New Zealand banks and registered non-bank deposit takers are already in a good position to withstand financial shocks. ANZ and others must meet strict requirements from the Reserve Bank and other financial regulators.
The Depositor Compensation Scheme acts as another protective layer for our personal and business customers. This brings New Zealand in line with countries like Australia, the UK, and others that offer similar protections.
The scheme is funded by New Zealand’s banks and other deposit takers and managed by the Reserve Bank of New Zealand – Te Pūtea Matua. It aims to:
- Further enhance trust and security in New Zealand’s financial system
- Make sure the Reserve Bank can act quickly to protect customers’ money if a financial company gets into serious trouble.
Some money isn’t protected by the scheme
Banking products not included in the Depositor Compensation Scheme include:
- KiwiSaver savings
- Foreign currency accounts.