Calling all clients with bank deposits. As of July 1st, this year the Reserve Bank Depositor Compensation Scheme (DCS) came into effect. This adds an extra layer of protection by covering the value of your money deposits up to $100,000 in the unlikely case of, say, a bank failure.
Who does it apply to? The scheme applies to anyone, who has deposits with banks or other recognised deposit takers such as credit unions, building societies, and finance companies. We have been advised that bank deposits in your portfolios that are held by our custodian, NZXWT, are also protected.
What’s in it for me? The DCS covers each depositor, whether an individual or a Trust, up to $100,000 in each deposit taker in the unlikely event that the deposit taker goes out of business and when the money is held in a DCS protected account.
How do I know if my accounts are DCS protected? Deposit takers are required to publicise their list of DCS registered accounts. You’ll find they have already posted this information on their bank websites, and these will include savings or transaction accounts as well as term investment accounts. However, give us a call if you’d like to double-check the eligibility of the accounts you hold.
Note, the scheme does not cover investments such as KiwiSaver, bonds, shares or similar investment products. Neither does it provide protection against fraud or scams.
