Under-fire Isle of Man Bank has put on hold its controversial plan to charge charities.

The bank was accused by one MHK of being ’so focused on profit and so neglectful of Manx society that it no longer seem worthy of its name’ after it announced new fees and charges on the accounts of charities, clubs and societies.

From May 29 the cost of monthly account maintenance was to increase by £10 with higher charges for depositing cheques in person instead of online.

Tynwald last month approved a motion calling for Treasury to draft legislation to make basic banking services free of charge for registered charities and not-for-profit clubs and associations.

In a statement, the bank confirmed that it had put on hold its charges until May 2022.

It said: ’We have decided to suspend fees for manual banking services for charities, clubs and societies for a second year until May 2022.

’We are committed to supporting every customer as they adjust to using digital banking services. The majority of our customers have made the transition but a sizeable minority have told us they need more time to get there as they emerge from the pandemic.

’We will work with those customers and their trade associations to help them get there. We are committed to supporting the government’s wider strategy of digital adoption but recognise the need to balance technological adoption with the capacity of society and people to adjust.’

Speaker Juan Watterson, who brought the motion to Tynwald, posted on Facebook: ’A reprieve for charities as the Isle of Man Bank is deferring its charging regime for a year.

’Whilst it is disappointing that these charges are still going to be introduced, at least people will be able to make informed choices in a less rushed timeframe.’