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Keeping Your Money Safe When Banking in Jersey

Understand how your savings are protected if a bank fails.

Protecting your savings

The Jersey Resolution and Depositors Compensation Authority (JRDCA) is the independent body dedicated to protecting the public and Jersey’s economy from the effects of bank failure.

We work to prevent disorderly bank failures through Resolution planning, and we manage the Jersey Bank Depositors Compensation Scheme (JDCS) to pay compensation if a bank is liquidated. We are one part of the broader banking financial safety net, which includes the following.

Jrdca

Resolution Authority

Sets resolvability requirements

Resolution planning

Preparing for bank failures

Jdcs

Depositor Compensation Scheme

Operational preparedness for payout

Compensation of up to £50,000

Jfsc

Supervisor

Sets financial standards

Supervises to check banks meet requirements

Acts if wrongdoing is identified

Gov je

Sets overall policy and legislation

Responsible for financial stability and use of public funds

What happens when a bank fails?

Bank failures are rare. However, if a Jersey bank runs into severe financial trouble, the JRDCA has two main ways to protect you:

Resolution (Keeping the bank open)

Where it is in the public interest of Jersey, we seek to ‘resolve’ the bank. This means we step in to manage the failure safely without closing the bank. Often through coordination with Home Resolution Authorities.

What happens? We might sell the failing bank to a healthy competitor, or transfer your accounts to a temporary “Bridge Bank” managed by us.

What this means for you: In most cases, the bank stays open. Your account number stays the same, your card continues to work, and you can access your money as normal.

How resolution works

Depositors Compensation (If the bank closes)

If the bank cannot be saved, it will be placed into liquidation (closed down).

What happens? The Depositors Compensation Scheme is triggered.

What this means for you: Using data from the failed bank, we will calculate your compensation (up to the £50,000 limit) and aim to pay it within 7 working days.

What you should do: If your bank is liquidated, you should open a new account with a different bank as soon as possible. We will usually pay your compensation by cheque, and you will need an account at another bank to pay this into.

Jdcs white

Jersey Bank Depositors Compensation Scheme

The Jersey Bank Depositors Compensation Scheme (JDCS) is a safety net designed to protect your savings if a bank fails. It protects individuals and Jersey charities up to £50,000 per eligible depositor, per Jersey banking group.

JDCS Factsheet

JDCS Factsheet

Want to find out more?

Learn more about JDCS and how it works here.

Which banks are covered?

Find a list of Jersey banks covered by the JDCS here.

Still have questions?

Discover everything you need to know in our frequently asked questions. JDCS FAQs

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