Depositor Compensation Scheme

The DCS is a government led initiative that is funded by deposit takers and administered by the Reserve Bank of New Zealand (RBNZ).

Key features of the scheme:

• It will protect a clients’ money (up to $100,000) in the event that the deposit taker (e.g. Rabobank) fails. 
• It ensures protected deposits are reimbursed up to $100,000 NZD per person. 
• It is an industry-wide change meaning all licensed deposit takers are participating in the scheme.

To increase public confidence in the financial system and align New Zealand with international standards.

Reminder: 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. The RBNZ is quoted as saying “New Zealand has one of the world’s most trusted and secure financial systems”.

The DCS takes effect on 1 July 2025.

From this date, all existing and any new protected deposits will be automatically covered.

The following Rabobank products are protected under the DCS:

Rabobank Online Savings (ROS)

• RaboSaver 
• PurposeSaver
• PremiumSaver
• NoticeSaver
• Term Deposit

Agribusiness

• Call Deposit
• Term Deposit
• All-in-One facilities with a credit balance 
• Current Accounts with a credit balance

The DCS does not cover:

• Foreign currency accounts 
• Overdrawn accounts or loan products with debit balance · Risk Management products e.g. derivatives and swap products

You are covered up to $100,000 NZD per person, per licensed deposit taker.

The compensation limit applies per depositor, per licensed institution. If you hold multiple eligible accounts with the same institution, the total compensation you can receive is capped at $100,000.

No. Coverage is automatic. If Rabobank NZ fails, the Reserve Bank of New Zealand will pay compensation to eligible depositors.

Note: We recommend clients take this as an opportunity to update their contact details with us (as needed) and with any other deposit takers where they hold accounts.

Yes, each account holder’s share is counted towards their individual protected $100,000 limit.

For example: if Jane and John have $250,000 in their joint account, Jane and John would both receive a payout of $100,000. The remaining $50,000 in their Joint account is not protected by the DCS in this example. This is because the DCS compensates depositors for up to a maximum of $100,000.

Yes, for the purposes of DCS each person in a partnership account will be treated as having an equal share in the protected deposit. In the case of a DCS event there is a process of notifying the Reserve Bank of percentages of shares in a protected deposit which is held.

Yes, Trust accounts are covered under the DCS, up to a maximum of $100,000 per Trust.

If multiple Trustees are named on the account, they are considered to be acting jointly on behalf of the Trust, and the total compensation remains capped at $100,000 for the entire Trust account.

For example: If ABC Family Trust has $300,000 in a Term Deposit and has three named Trustees, the Trust would receive a payout of $100,000 and the remaining $200,000 would not be protected under the DCS.

Companies/businesses are treated as separate customers by the DCS, and are therefore eligible for compensation.

For example: If Jack and Jill own XYZ Company and have $80,000 in their Rabobank Call Deposit account. Jack also has $25,000 in a PremiumSaver and Jill has $20,000 in a NoticeSaver. If Rabobank were to fail, Jack would be compensated $25,000, Jill would be compensated $20,000 and Jack and Jill’s business, XYZ Company would be compensated $80,000.

DCS payments may include accrued interest. Payouts including any accrued interest will be calculated by the Reserve Bank of New Zealand (RBNZ).

You will be compensated up to the scheme’s limit. Any amount above the cap may not be covered.

The Reserve Bank of New Zealand (RBNZ) has the discretion to determine how compensation is distributed. In most cases, it will follow a standard deposit hierarchy to allocate compensation – particularly for clients with more than $100,000 spread across multiple accounts or products. The deposit hierarchy is designed to ensure that the most accessible and essential accounts (like transactional accounts) are compensated first, followed by savings and term deposits.

A list of licensed deposit takers will be maintained by the Reserve Bank and available on their website.

Note: For the purposes of the DCS, a registered bank is treated as being a licensed deposit taker.

Yes, we are required to notify you of any changes to the DCS coverage of our products. In the event there are changes, we will update the information on our DCS webpage.

No, how you use your account remains unchanged. The DCS does not impact your daily banking.

You can visit the Reserve Bank of New Zealand’s website at https://www.rbnz.govt.nz  or contact us directly for more details.