More savings protected on island

The level of protection is now in line with the UK

A new level of protection for people with bank accounts on the Isle of Man has been formalised.

Tynwald has approved extra safeguards on the island's Depositors Compensation Scheme (DCS).

The scheme now provides for a payment of up to £150m by the Isle of Man government to support the compensation of depositors up to £50,000 each.

This is in addition to payments into the scheme by banks and recoveries made through liquidation.

The compensation guarantee rises in line with the protection offered in the UK.

The changes moved also increase protection for non-individual depositors - including charities and businesses - to a maximum of £20,000.

Chief Minister Tony Brown MHK said: "The Isle of Man government is prepared to commit public money to play its part in helping depositors, in partnership with the Island's banking sector.

"The scheme approved today is fair and responsible, and government is grateful to Tynwald for its support."

The new limit will apply to all customers whether they live on the island or not.