Depositor Protection for offshore savings accounts
What deposit protection can you expect if all goes wrong?
Whilst some might regard the level of UK investor compensation protection as ungenerous, savers should be aware that this is still considerably stronger than that offered offshore.
Here is some information about savings protection within the offshore centres considered on this site:
- The Isle of Man offers compensation up to the first £50,000 or equivalent for an individual depositor's total deposits in institutions licensed in the Isle of Man (£20,000 for 'other categories') up to an aggregate fund size of £200M. There is no guarantee of speedy payment.
- Guernsey offers up to £50,000 compensation per depositor to a maximum of £100M total paid in 5 years. Does not cover business accounts.
- Jersey offers up to £50,000 per depositor for accounts held in a Regulated Bank. As in the UK some groups offer a single scheme only
- Ireland has a scheme protecting the first €100,000 for institutions authorised in Ireland.
- Gibraltar - In 1999 instituted a scheme comparable to that in the UK offering compensation up to €100,000 per claimant for deposits in participating banks.
- The Bahamas says it operates a scheme for participating banks, but amounts are unspecified. A depositor must make a claim within a year of a bank failure.
- Cayman Islands appears not to be operating any scheme.
- European Union is reviewing the current directive on compensation.
- Liechtenstein offers cover of up to CHF100,000 to a maximum of CHF400M.
- Sweden offers cover of up to €100,000. Company accounts qualify for compensation from qualifying institutions.
- Switzerland offers cover of up to CHF100,000. Cover includes accounts held overseas by a Swiss bank.
- Hong Kong covers up to HK$500,000 for maturities up to 5 years (but not bearer bonds) payable without limit of time.
- India offers cover of up to R100,000 per depositor. In some cases a depositor can claim for more than one account configuration.
- The Wider World - represented by Basle Committee countries.
- International Survey - Old but still relevant article from the Herald Tribune.