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Depositor compensation scheme to protect savings.
What's the Depositor Compensation Scheme (DCS)?
- The Reserve Bank - Te Pūtea Matea has introduced a new Depositor Compensation Scheme from 1 July 2025.
- In the unlikely event of a failure, the scheme protects customers with money held in DCS-protected accounts, and covers up to $100,000 per bank, credit union, building society or finance company (collectively referred to as deposit takers).
- Banks and other deposit takers will pay for the scheme.
What it means for you.
If a deposit taker fails, the Depositor Compensation Scheme will cover each depositor up to $100,000 across savings, transaction and term deposit accounts in each deposit taker. The Reserve Bank's website below has full information about eligibility.
Most deposits will be covered by the Depositor Compensation Scheme (DCS), but there are some exceptions, including money held in:
- Bonds and other tradable products
- KiwiSaver and other superannuation schemes that are managed investment schemes
- Foreign currency accounts.
For a complete list of eligible Westpac products, refer to the eligible products section. Here's more details on what the DCS covers.
Why now?
The International Monetary Fund recommended the scheme to bring New Zealand in line with other OECD countries and international best practice for depositor protection.
As well as the scheme, the Deposit Takers Act 2023 also brings in new licensing, standards and Reserve Bank checks for banks and other deposit takers to make sure they are stable, protect customers and prevent financial crisis.
Eligible products.
The Reserve Bank have set criteria that determines whether a product is eligible for compensation under the scheme. The full list of Westpac products eligible for the scheme are outlined below.
Accounts protected by the Depositor Compensation Scheme
|
Account type |
Personal accounts |
Business accounts |
|
Transactional |
Career Starter Account Everyday Account Graduate Account International Student Account Tertiary Account Youth Account |
Business Interest Account Business Transact Account Non-profit Organisation Account Solicitor's Nominated Trust Account
|
|
Savings |
Notice Saver Online Saver1 Save & Win1 Simple Saver Westpac Bonus Saver Westpac Bonus Saver PIE Westpac Home Insurance Settlement |
Business Online Saver Account Corporate Investment Account Money Market Call Deposit Multi-Deposit Scheme - On-call deposit Wholesale Notice Deposit
|
|
Investments |
Term Deposit Westpac Term PIE Fund |
Multi-Deposit Scheme - Term Deposit Wholesale Term Deposit |
|
Any positive balance on these credit products |
Choices Everyday Choices Home Loan - Fixed Choices Home Loan - Standard Floating2 Fee Free Mastercard® Freedom Cashline Card1 hotpoints® Mastercard® hotpoints® Platinum Mastercard® hotpoints® World Mastercard® Westpac Airpoints™ Mastercard® Westpac Airpoints™ Platinum Mastercard® Westpac Airpoints™ World Mastercard® |
Agriline Business Airpoints™ Mastercard® Business Mastercard® Business Prepaid Mastercard® Business Revolve Account Business Support Loan1 BusinessPLUS Mastercard® with hotpoints® FlexEquip Go to Pay
|
|
Government products3 |
|
Government Account Government Department Mastercard® Government Transaction Account Government Trust Account Mastercard® NZ Defence Business Pension Account Police Business Mastercard® Social Welfare Mastercard® |
1 Product is no longer for sale.
2 For Choices Floating with Offset, any linked account in credit balance may be eligible for compensation under the Depositor Compensation Scheme depending on the eligibility of the linked product. Refer to the product page for the linked product.
3 The Reserve Bank has defined a list of Government Agencies that are not eligible for compensation under the Depositor Compensation Scheme. These products are eligible as there may be depositors holding these products that are not on the Reserve Bank list.
Contact us.
If you have questions, get in touch at welcometeam@westpac.co.nz.