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Deposit Takers Act 2023

Depositor compensation scheme - Entitlement to compensation - Other matters relating to calculation of entitlement

218: Bank may determine interest accrued

You could also call this:

"The bank can estimate the interest on your savings if it's too hard to calculate exactly."

Illustration for Deposit Takers Act 2023

The Bank can decide how much interest you have earned on your protected deposit. You might be wondering how they do this. They make a reasonable guess if they are not sure about the total interest.

The Bank does this if they think it is hard to work out the total interest, or if it would take too long to figure it out. They also do this if working out the total interest would cost too much. This means they weigh up the costs against the benefits of calculating the exact interest you have earned.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS506612.

Topics:
Money and consumer rights > Banking and loansMoney and consumer rights > Savings and retirementBusiness > Industry rules
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217: Bank may rely on licensed deposit taker’s records and information from eligible depositors and other persons, or

"Banks can use information from deposit takers and customers when paying compensation"

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219: Payment of entitlements, or

"Getting the money you are owed from the Bank"

Part 6Depositor compensation scheme
Entitlement to compensation: Other matters relating to calculation of entitlement

218Bank may determine interest accrued

  1. The Bank may determine the amount of interest accrued on a protected deposit by making an estimate that is reasonable in the circumstances, if the Bank considers that—

  2. there is uncertainty as to the entire amount of interest that has accrued; or
    1. the time required to ascertain the entire amount of interest that has accrued would be so long as to unduly delay the payment of compensation under this Part; or
      1. the costs and expenses that would be incurred in the calculation made to ascertain the entire amount of interest that has accrued would, having regard to the likely difference between the ascertained amount and the estimated amount of the interest, outweigh the benefits of making the calculation.