What is the Depositor Compensation Scheme (DCS)?
The DCS is a government scheme, created to provide protection for customers with deposits with New Zealand deposit takers - including The Co-operative Bank, other registered banks, credit unions, building societies, and finance companies.
The scheme provides protection for customer deposits up to $100,000 per deposit taker, in the unlikely event a deposit taker fails. The DCS will be funded by levies on deposit takers, with a Crown backstop for any shortfall.
The Reserve Bank of New Zealand administers the scheme and you can find more information on their website Depositor Compensation Scheme (DCS) - Reserve Bank of New Zealand - Te Pūtea Matua.
Why is New Zealand introducing a DCS?
The DCS is designed to give depositors confidence that their money is protected, adding to the stability of New Zealand’s financial system. Until now, New Zealand was one of only two countries in the OECD without a deposit compensation scheme (along with Israel).
While this protection and reassurance is welcome, customers can have confidence that our banks in New Zealand are some of the safest in the world. They are highly regulated, well capitalised, and profitable – which all helps makes them resilient. The Co-operative Bank has one of the highest capital ratios among banks operating in New Zealand and a strong liquidity position.
What does it mean for Co-operative Bank customers?
From 1 July 2025, customers with deposits with the Bank will be automatically protected, up to $100,000 in the unlikely event the Bank fails.
What products are covered by the DCS?
The following Co-operative Bank products have been classified as DCS-protected products, meaning your money in these products would be covered up to a total of $100,000 per depositor:
- Transaction Accounts – Electronic Account, Current Account, Smile on Call Account, and Business Current Account.
- Savings Accounts – Step Saver Account, Online Account, Prize Draw Saver Account, Dosh Account, Dollars and Sense Account, and Business Online Account.
- Term Deposits – All Term Deposit account types.
- Credit Cards – any positive balances on a Fair Rate Credit Card.
- Revolving Credit Home Loan – any positive balances on a Revolving Credit Home Loan.
What products are NOT covered by the DCS?
The following products are not DCS-protected products:
KiwiSaver – any funds in either the Fisher Funds KiwiSaver Scheme or Fisher Funds KiwiSaver Plan are not covered.
Where can I find more information?
Find out more about the DTA and DCS on the Reserve Bank’s website.