SAFEGUARD access to your funds in order to be resilient in the event of temporary bank disruptions, fraud attack or possible bank failures.

General manager for JMMB Bank with responsibility for retail banking Moya Leiba-Barnes is reminding everyone that disruptions can occur in any financial institution, whether brought on by system upgrades or technical issues. During these times, she says it’s important to not be left vulnerable, unable to pay for food, gas or bills.

“Do not keep excessive amount of funds in current accounts. You put what you need for your transactional balances to pay your bills and things that you need for the month. If you have excess cash, move those excess cash into a savings account,” said Leiba-Barnes while making her recommendations.

She explained that a feature at JMMB is a bonus savings account geared towards people who want to save for emergencies or a goal. Bonus saving accounts usually don’t have a debit card attached to them, which she says can also protect against fraud attacks.

“If any type of fraud occurs, it usually goes through your current account so if you just keep the minimum balance in there, what you need for transactions, you are protecting yourself and ensuring your bigger sums of money are kept safely,” she said.

But another way to safeguard funds, she says, is by having a credit card. Although the mismanagement of these cards have buried people deep in debt, she says proper use and management can have significant benefits such as security in the case of emergencies, to keep one sustained until their cash becomes available or for the rewards features that come with some cards.

“You have to take responsibly. Again, if you have a credit card, ensure you plan what you are using it for,” she urged. “My caution to people, though, [is] make sure at the end of the month you clear those balances. Do not treat the credit card as an extension of your wallet; the credit card is to be used responsibly and not to be overspent so that at the end of a year you don’t find yourself with bills you cannot pay. Try and pay it out because those high interest rates are going to come and bite you,” Leiba-Barnes added.

While JMMB does not yet have a credit card she says it’s coming soon.

Safeguarding your funds against fraud attacks and lengthy bank recovery and investigation is also something she says individuals must also consider. Leiba-Barnes suggests that accounts be checked daily.

“Don’t allow months to pass before checking; check from time to time so you quickly notice fraudulent activity” she says. This can help the bank to move quickly to retrieve funds before a transaction has already been processed.

The disruptions at banks can sometime lead to fears and further distrust in the financial system. However, Barnes reassures, the fear of having all your money in one bank has been alleviated through the Jamaica Deposit Insurance Corporation (JDIC).

One of the things about the Government putting in place a deposit insurance scheme is not only for the purpose of protection, but also to engender “the sort of confidence that you can bring to the financial system”, said Marjorie McGrath, director of corporate planning and communications at the JDIC.

The JDIC has insured up to J$1.2 million of deposits in each bank, per depositor. Any more than that in any one account would not be insured.

“If any of those accounts are above the 1.2 million-dollar limit, then you have to await the liquidate process to get any additional funds, so that is not guaranteed,” McGrath explained in an interview with the Jamaica Observer.

However, McGrath explained that securing insurance for more than $1.2 million dollars depends on how funds are held, such as in the case of different ownership categories in a single financial institution.

“If you have an account in your name alone [individual account] and you have another account in your mother or sister name, on the account that you hold in different names they are covered separate up to the 1.2 million dollars,” she explained.

While she would not advice how anyone should handle their money she says people must make informed decisions based on knowledge of how the scheme works. She added that there are also alternative ways to handle a bank failure which wouldn’t require a pay-out.

“We can have what you call a merger/acquisition, with another financial institution who would take over those deposits of the same institution and the process is almost seamless, so people would just be allowed to go on with their business as if nothing happened,” she assured.

While the JDIC has an obligation to pay out within three months, international standards require only seven to 14 days, and it’s something McGrath says the JDIC is trying to change.

Another option to ensure safeguarding your money is spreading it across multiple banks. It can be a prudent strategy to diversify your risk and enhance the security of your funds.

“People can move their funds around within the formal sector and they should be safe. There is always this thing growing up with your granny. You know you don’t put all your eggs in one basket. Yes, that is something that you can do. You know you might want to have your funds in two different institutions [and] that’s fine. JMMB has never said to their clients, ‘bring every single thing to us’; we like to say let us manage a goal,” said Leiba-Barnes.