Your Money, Protected: What the Deposit Takers Act Means for You
Not many things are guaranteed in life, so when one comes through, it’s exciting!
Big news for Kiwi savers! A new law called the Deposit Takers Act is now in place — and it’s designed to make your money safer. At Athena Wealth, we’re all about helping you feel confident and informed about your finances. So let’s break down what this law means in plain English.
So, What Is the Deposit Takers Act?
The Deposit Takers Act is a new rulebook for banks, credit unions, and finance companies — basically, any place where you might keep your savings. It makes sure these institutions are well-run and that your money is better protected if something goes wrong [1].
The Best Part: Deposit Protection
Here’s the headline: if your bank or credit union fails, the government will now guarantee up to $100,000 of your savings per institution. This is called the Depositor Compensation Scheme.
That means if you have, say, $80,000 in a savings account and the bank goes under, you’ll get that money back. If you have more than $100,000, you might want to spread it across different banks to stay fully protected.
Why This Matters
Before this law, New Zealand was one of the few developed countries that didn’t have a deposit protection scheme. Now, we’re catching up — and that’s great news for everyday savers like you.
This change instils greater trust and confidence in the financial system. It’s especially helpful for those who don’t have access to complex investment tools or financial advice — and that’s a win for financial fairness.
Which institutions are providing the protection
The list of deposit takers who are providing the protection is on the Reserve Bank of NZ website - list here.
Other Good Stuff in the Act
Better Oversight: The Reserve Bank now has stronger powers to keep an eye on financial institutions and step in early if things look shaky.
One Set of Rules: All deposit takers now follow the same rules, making things clearer and more consistent.
Licensing: Every deposit taker must be licensed, which means they’ve met certain standards to operate.
What Should You Do?
Here are a few simple steps you can take:
Check where your savings are: Are they with a licensed deposit taker? Are they under the $100,000 protection limit?
Spread your savings: If you have more than $100,000 in cash, consider using more than one institution.
Talk to us: At Athena Wealth, we can help you make sure your savings and investments are safe, smart, and aligned with your goals.
Athena Wealth’s Take
We love this change. It’s a step toward financial empowerment — especially for women and others who’ve been underserved by the system. It’s about making sure everyone has a fair shot at building and protecting their wealth.
If you’re unsure how this affects you, or want to review your financial plan, we’re here to help.
