Depositor
Compensation
Scheme
Frequently asked questions
- What is the Depositor Compensation Scheme?
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- From 1 July 2025, the Reserve Bank of New Zealand (RBNZ) will implement the new Depositor Compensation Scheme (DCS and the Scheme).
- The Scheme will provide protection on up to $100,000 of deposited funds per customer in DCS-protected accounts (transaction accounts, savings accounts, notice saver accounts, term deposits).
- The Scheme has been introduced under the Deposit Takers Act 2023 and brings New Zealand in line with other parts of the world offering similar protection to depositors.
- The Scheme will be funded and set up by banks and other deposit takers and if the Scheme is activated, it will be administered by the RBNZ.
- What does it mean for you?
- You don’t need to take any action for your Heartland Bank deposit/s to qualify for protection – protection applies automatically from 1 July 2025 when the Scheme takes effect. However, updating your contact information with us or other deposit takers where you hold accounts, would be helpful.
- Who is covered?
- Individuals and organisations (such as companies, partnerships and trusts) who hold, or have their money held in DCS-protected accounts (described further below), qualify for protection under the DCS.
- How much is covered?
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Up to $100,000 per customer across savings, transactional, and term deposit accounts is covered by the DCS.
Your protection under the DCS is based on your total funds with Heartland Bank. This means you are protected up to a maximum of $100,000, regardless of how many accounts or deposits you have with us.
- Which accounts are covered?
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The DCS covers various account types, including transactional accounts, savings accounts, notice saver accounts and term deposits.
Our Portfolio Investment Entity (PIE) deposits are also covered. Heartland will have a full list of products that are covered by the Scheme available on our website from 1 July 2025.
Investment products such as KiwiSaver, managed funds, and bonds are not covered.
- When would the Scheme be activated?
- The Scheme will be activated in the unlikely event that a bank or deposit taker fails, for example, by going into receivership. Rest assured banks are heavily regulated and have significant controls in place to prevent this from happening.
- Why is the Scheme being introduced?
- In 2017 the Government commenced a review of financial services law and as part of that work recommended the Deposit Takers Act, which establishes the Scheme. While New Zealand banks have strong buffers to shield customers from sudden financial or economic shifts, the DCS is designed to provide an additional layer of protection for Kiwis.
- Where can I find out more?
- You can explore scenarios and learn more about the DCS on the Reserve Bank's website.
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