Under the Deposit Takers Act 2023, the New Zealand Government is introducing the Depositor Compensation Scheme (DCS) to provide protection for eligible depositors.

In the event that a licensed deposit taker—such as a bank, credit union, building society, or finance company—fails, the scheme offers compensation of up to NZD 100,000 per person, per institution, based on the combined balance of all protected accounts held with that institution.

The scheme will come into effect on 1 July 2025. It is funded by licensed deposit takers and administered by the Reserve Bank of New Zealand, with the aim of enhancing the stability of the financial system and strengthening public confidence in the banking sector.

Products Covered by the Scheme

Bank of China (New Zealand) Limited is participating in the DCS.

• The following products offered by the bank will be covered:
  • NZD Online Saver accounts
  • NZD Term Deposits
  • Positive balances on certain lending products (no money owing)
• The following products are not covered under the scheme:
  • Foreign currency accounts
  • Margin Term Deposits

Customer needs to know

• No action is required — eligible accounts will be automatically covered once the scheme is in effect.
• Customers are encouraged to keep their contact details up to date with the bank to ensure timely communication if required.

Learn more

• For more details about the DCS, including eligibility and how compensation is paid, please visit the Reserve Bank of New Zealand website – https://www.rbnz.govt.nz/dcs.