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Investing 101Chapter 4 · Where Jamaicans can put money
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For education only. Not financial, investment, tax or legal advice. Investing carries risk. Read more

Everything in this book is for education only. It explains how money and investing work in general. It is not financial, investment, tax or legal advice, and it does not recommend any particular investment, product or provider. Prices, rules and tax figures change: check them with the official source before you act. Before you make an investment decision, consider speaking to a licensed adviser where you live (in Jamaica, one licensed by the Financial Services Commission). Investing carries risk, including losing some or all of the money you put in.

Banks, building societies and credit unions

9 minRead · See · Try · Check · Do
By the end you can

Know what banks, building societies and credit unions offer, and what protects your savings in each.

A glazed brown pottery piggy bank with a coin slot on its back
Photo: Cornischong / Wikimedia Commons, CC BY-SA 3.0. Resized
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1

The simplest place for money is a savings account. In Jamaica you can open one at a commercial bank, a building society or a credit union. Each pays a little interest and lets you take money out when you need it.

2

Banks and building societies are licensed and supervised by the Bank of Jamaica (BOJ). Their deposits are protected by the Jamaica Deposit Insurance Corporation (JDIC): if one fails, the JDIC pays back up to J$1,200,000 per person, per institution, interest included, and must pay within three months.

3

A credit union is a co-operative owned by its members. Credit unions are registered with the Department of Co-operatives and Friendly Societies (DCFS), not licensed by the BOJ, and the JDIC does not cover them. The DCFS says credit unions have an insurance facility for savings through their league: ask yours what it covers.

4

A fixed deposit (also called a time deposit or certificate of deposit) keeps money for a set time at an agreed rate. At a bank or building society the JDIC covers it too, inside the same J$1,200,000. Before you sign, ask what happens if you need the money early.

A small bank building with columns, a savings passbook and a coin stack beside it
Photo: My V.I.P. Academy

Banks, building societies and credit unions are the simplest places for savings.

Where savings can sit, who supervises each place and whether the JDIC covers it
PlaceSupervised byJDIC cover
Commercial bankBank of JamaicaYes, up to J$1,200,000 per person, per institution
Building societyBank of JamaicaYes, up to J$1,200,000 per person, per institution
Credit unionDepartment of Co-operatives and Friendly SocietiesNo; ask about the league’s savings insurance
Securities dealer (repos, funds)Financial Services CommissionNo; see the next two lessons
Go deeper. The JDIC limit is per person at each institution, not per account: accounts in your own name at the same bank are added together, and opening more of them there does not raise the limit. Money at two different institutions is covered separately (two branches of one bank count as one). Joint accounts are covered apart from your own, up to J$1,200,000 for each set of joint owners. Foreign-currency deposits are covered too, but paid out in Jamaican dollars. Insured institutions must display the JDIC’s Certificate of Deposit Insurance. Money above the limit is not certain to be lost: the JDIC issues a certificate for it, and the liquidator pays out what it can later.

About 3 minutes