Savings accounts in banks and other authorized financial institutions will now be covered or insured up to $1.2 million dollars, effective August 31.
The Deposit Insurance Act has been increased from J$600,000 to J$1,200,000 The increase, effected through a Ministerial Order has been approved by both Houses of Parliament. The increase will take effect August 31, 2020, after publication in the Gazette. At this threshold, approximately 97 per cent of all accounts at deposit taking institutions are covered under the Deposit Insurance Scheme (DIS), a statement from the Ministry of Finance said.
The DIA, which allowed for the creation of the Jamaica Deposit Insurance Corporation (JDIC) to establish and manage the DIS, was enacted in 1998, after the collapse of the financial sector causing loss to thousands of depositors.