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Depositor Compensation Scheme (DCS)

Extra protection for your Liberty term deposit.

Logo of the Depositor Compensation Scheme with a circular design featuring intersecting lines next to the text.

From 1 July 2025, the Depositor Compensation Scheme (DCS) offers extra protection for your Liberty term deposit in the unlikely event your bank or non-bank deposit taker goes out of business.

Frequently asked questions

  • The Depositor Compensation Scheme (DCS) covers each depositor up to $100,000 per eligible deposit taker (i.e. banks and non-bank deposit takers, including credit unions, building societies, and finance companies that take retail deposits) in the event of a failure, when money is kept in DCS-protected accounts.

  • The DCS is a government scheme that is funded by deposit takers and administered by the Reserve Bank of New Zealand – Te Pūtea Matua (RBNZ).

  • The DCS is an added layer of protection applicable to banks and non-bank deposit takers with DCS-covered deposits, giving you further peace of mind.

  • Yes, from 1 July 2025, anyone with a new or existing Liberty term deposit will be protected up to $100,000 per depositor by the DCS.

  • You don’t need to do anything. From 1 July 2025, if your money is held in a DCS-protected account like a Liberty term deposit, protection under the DCS is automatic.

Updated: 16 June 2025