DEPOSITOR COMPENSATION SCHEME
The Depositor Compensation Scheme (DCS) will come into effect from 1 July 2025. It is designed to protect the New Zealanders’ deposit and savings.
What is DCS and how it works?
The DCS covers each customer up to NZD 100,000 per deposit taker such as banks and non-bank deposit takers, including credit unions, building societies and finance companies in the unlikely event of a failure, when money is held in DCS-protected accounts.
DCS is a Government Scheme funded by deposit takers and administered by Reserve Bank of New Zealand – Te Pūtea Matua
DCS gives depositors confidence that their money is protected, adding to the stability of New Zealand’s financial system.
Which accounts of BOBNZ will be covered under DCS?
The following products and accounts will be covered by the DCS up to a total of NZD 100,000 per depositor. These products and accounts are referred to as DCS protected accounts.
The bank account type and schemes offered by BOBNZ covered under the DCS are:
Savings accounts:
- Baroda Savings Account
- Baroda Golden Saving Account
- Baroda Super Saving Account
Current accounts:
- Baroda Current Account – Personal
- Baroda Current Account – Business
- Baroda Premium Current Account
Fixed Deposit accounts:
- Baroda Fixed Deposit
- Baroda Monthly Deposit
- Baroda Annual Deposit
- Baroda Recurring Deposit
Any Positive balances in Overdraft facilities:
- Baroda Overdraft to individuals against Bank’s Own Deposit
- Overdraft under Baroda Home Loan
- Overdraft under Finance for Small and Medium size business firms (SMEs)
- Overdraft under Scheme for financing Retail Traders
- Baroda Overdraft Advantage for Salaried Individuals
- Overdraft against Property (Mortgage loan)
What you need to do?
You do not need to take any action. Your eligible deposits with BOBNZ are automatically covered under the Depositor Compensation Scheme from 1 July 2025. Please note that some money is not protected by DCS such as foreign currency accounts and government agencies.
If you need more details about the DCS scheme, please visit the Reserve Bank of New Zealand (RBNZ) website: Depositor Compensation Scheme