From 1 July 2025 the Depositor Compensation Scheme (DCS) comes into effect, providing additional protection for your deposits if a deposit taker goes out of business. Learn more about how it works and what it means for you.
What is the Depositor Compensation Scheme (DCS)?
The Depositor Compensation Scheme (DCS) covers each depositor up to $100,000 per deposit taker (such as banks, credit unions, building societies and finance companies) in the unlikely event the deposit taker goes out of business, when money is held in DCS-protected accounts.
The Reserve Bank of New Zealand – Te Putea Matua (RBNZ) has a helpful explainer on their website - visit rbnz.govt.nz/dcs
Why is it being introduced?
The DCS is being introduced by the government as part of the Deposit Takers Act 2023. It’s funded by deposit takers and administered by the RBNZ.
The scheme gives depositors confidence that their money is protected, adding to the stability of New Zealand’s financial system. Many other countries offer similar protection to depositors.
Which of my TSB accounts will be covered by the DCS?
The following accounts will be covered, up to a total of $100,000 per depositor. We refer to these accounts as DCS-protected accounts.
If any of your accounts are in overdraft or if you have lending with TSB, these will not contribute toward your compensation amount. Only positive balances will be used to calculate any entitlement.
Accounts currently offered that are protected by the DCS.
| Account type | Personal accounts | Business accounts | |||
|---|---|---|---|---|---|
| Account type | Everyday accounts | Personal accounts | Connect Plus, Youth | Business accounts | Business Everyday, Society Cheque, Solicitor Trust, Solicitor Cheque |
| Account type | Savings accounts | Personal accounts | WebSaver | Business accounts | Business On Call |
| Account type | Investments | Personal accounts | Term Investments | Business accounts | Term Investments |
| Account type | Any positive balance on these credit products | Personal accounts | Liberty Revolving, Low Rate Mastercard, Platinum Mastercard | Business accounts | Liberty Revolving, Business Mastercard |
Accounts no longer offered to new customers that are protected by the DCS.
| Account type | Personal accounts | Business accounts | |||
|---|---|---|---|---|---|
| Account type | Everyday accounts | Personal accounts | Personal, Saver Plus, Statement Savings, Savings, Student First, Freestyle Junior | Business accounts | Business Cheque |
| Account type | Savings accounts | Personal accounts | Premier, Horizon Savings, Horizon Education, Peak Savings, On-call Special | Business accounts | |
| Account type | Investments | Personal accounts | Funeral Term Investment | Business accounts | |
| Account type | Any positive balance on these credit products | Personal accounts | Equity Revolving loan | Business accounts |
What isn’t protected under the DCS?
Foreign currency accounts and KiwiSaver savings are not protected under the DCS.
A small number of depositors, such as government agencies, are not eligible under the DCS.
Do I need to do anything to be covered by the DCS?
You don’t need to do anything to be covered. From 1 July 2025, any money you have in DCS-protected accounts will automatically be protected, up to $100,000 per depositor, per deposit taker.
Where can I get more information
Visit Deposit Takers Act - Reserve Bank of New Zealand - Te Pūtea Matua or rbnz.govt.nz/dcs for more information.