Deposit protection
If as an individual you invest your money in Jersey, your savings are protected up to the amount of £50,000.
Jersey has a depositors' compensation scheme in place which provides individual depositors with protection for up to £50,000 of savings in the unlikely event that a Jersey bank should fail.
The key features of the depositors' compensation scheme (DCS) include:
- it provides protection of up to £50,000 per person, per Jersey banking group, for local and international depositors, in line with international standards
- an interim payment of up to £5,000 will be made within 7 working days and the balance of compensation within 3 months
- the £50,000 limit will apply per person, so a £100,000 deposit held in a joint account by 2 people would be completely covered
- the DCS will be operated by a independent board that will appointed by the States as soon as possible
- the maximum liability of the DCS will be capped at £100 million in any 5 year period, in line with the Guernsey scheme
- the majority of the cost of the compensation will be borne by the banking industry, with the States making up any shortfall. In most cases, the DCS would be funded solely by levies on the banking industry with any States contribution being fully repaid from the liquidation proceeds
Download deposit compensation scheme FAQ (size 22kb)
Download Oxera's full report: deposit guarantee arrangements for the States of Jersey – a review and valuation of options (size 215kb)