| Dear Member, We wanted to take this opportunity to update you on the Depositor Compensation Scheme that will come into effect today (1 July 2025). The Depositor Compensation Scheme (DCS) is an industry-wide initiative where
SBS, as a registered bank is included. The DCS covers each depositor up to $100,000 per deposit taker in the unlikely event of a failure, when money is held in
DCS-protected accounts. The DCS provides an additional layer of protection and peace of mind for New Zealanders, adding to the stability of New Zealand’s financial system. Why is the Depositor Compensation Scheme being introduced?
The DCS is being introduced to give New Zealanders more confidence that their money is safe. Many other parts of the world offer similar protection to depositors. The DCS is a government-backed scheme, run by the Reserve Bank of New Zealand – Te Pūtea Matua (RBNZ), and funded by banks and other deposit takers.
New Zealand’s deposit takers, including SBS, already meet strict rules set by the RBNZ and other regulators. The DCS adds another layer of protection for depositors by providing compensation of up to $100,000 in the unlikely event that something goes wrong and a deposit taker fails. Do I need to do anything to be covered by DCS?
No, you don’t need to do anything to be covered. From 1 July 2025, any money you have in a DCS – protected account will automatically be protected, up to $100,000 per depositor. A list of the products offered by SBS that are protected by the DCS is published on our website at sbsbank.co.nz/depositor-compensation-scheme Updating your contact details
It might be a good idea to update your contact details with all the banks and other deposit takers where you have accounts. Where can I find more information?
Kind regards
Shane Evans
General Manager Retail |
