What is the Depositor Compensation Scheme?
Starting from 1 July 2025, The Depositor Compensation Scheme (DCS) will protect up to $100,000 per eligible client per deposit taker (i.e. banks and other deposit takers such as credit unions, building societies and finance companies) in the unlikely event of a failure.
DCS is a Government led scheme, under the Deposit Takers Act 2023 that is funded by levies on banks and other deposit takers and administered by The Reserve Bank of New Zealand - Te Pūtea Matua (RBNZ).
Why is the scheme being introduced?
The scheme has been established under the Deposit Takers Act, which became law in July 2023. The Act was established to provide a unified, modern regulatory framework for all deposit takers in New Zealand. The Depositor Compensation Scheme is one of the first initiatives introduced under the Act.
The scheme ensures New Zealand is aligned with international best practice, by offering the same level of protection as other OECD countries.
It is important to note that Rabobank along with other New Zealand banks are already well-capitalised and prepared to handle any potential financial disruptions. RBNZ is quoted as saying “New Zealand has one of the world’s most trusted and secure financial systems”.
What does it mean to me?
From 1 July 2025, your eligible deposits with Rabobank will be protected under the Depositor Compensation Scheme (DCS).
Note: Loan products with a debit balance, investment products, traceable fixed income securities and any product denominated in a currency other than NZD are not protected by the Depositor Compensation Scheme.
Do I need to do anything?
For now, nothing is changed, so you don’t need to take any action. When DCS becomes effective, any funds you have in your Rabobank account(s) will automatically be protected by the scheme, up to $100,000 per eligible depositor.
We recommend taking this opportunity to update your contact details (as needed) with us and any other deposit takers where you hold accounts.
How to find out more
For more information, please refer to the Depositor Compensation Scheme information on the RBNZ website.