The following information provided by the Depositors Insurance Fund:
Your deposits in this bank are fully insured, fully protected. The FDIC insures all deposits up to $100,000 per depositor except self directed retirement accounts, which are insured up to $250,000 per depositor. All deposit amounts above the FDIC limits are insured in full by the Depositor Insurance Fund.
The FDIC was established by the U.S. Congress in 1933 with a mission to insure bank deposits. Originally set at $2,500, the FDIC’s insurance limit has increased over time to the current amounts.
The DIF was established by the Massachusetts legislature in 1932 and started insuring deposits in 1934. Today, the DIF is a private insurer covering over $2.7 billion of depositors' funds in excess of the FDIC limit, in over 100 Massachusetts chartered savings banks.
Electronic Deposit Insurance Estimator (FDIC)
I've noticed that my bank displays the FDIC and DIF symbols. What does
FDIC/DIF mean?
Both organizations insure depositors' funds against loss. The first
$100,000 of non-retirement deposits and $250,000 of self-directed
retirement deposits per depositor are insured by the Federal Deposit
Insurance Corporation (FDIC). All deposits above these amounts are
insured by the Depositors Insurance Fund (DIF).
Do all banks offer FDIC and DIF insurance coverage?
No. While there are other insuring entities, only Massachusetts chartered savings banks offer the additional protection of DIF insurance.
Are all my deposits in Massachusetts chartered savings banks insured in full?
Yes. All types of deposit accounts are covered including savings, checking and NOW accounts, money market accounts, certificates of deposit, IRAs and Keoghs, and all other deposit accounts held with Massachusetts chartered savings banks.
Has any depositor ever lost money in an FDIC/DIF bank?
No. The FDIC has always paid deposits in full up to its insurance limit. The DIF has always paid all deposits in excess of the FDIC's limit. No depositor has ever lost a penny in an FDIC/DIF member bank since either fund was established.
How strong are the FDIC and the DIF financially?
The FDIC is backed by the full faith and credit of the U.S. Treasury. While the DIF is not backed by federal, state or local governments, the Fund is very strong and has extensive resources. The banking crisis of the late 1980's serves as a poignant example of the DIF's financial strength. In this period, 18 DIF member banks failed. These banks contained funds from over 6,300 excess depositors. Their excess deposits totaled $250 million. Each and every depositor was paid in full. This was the worst period in the history of the Massachusetts thrift industry, yet the Fund has more money today than it did at the start of the crisis.
Is the DIF subject to any form of regulatory scrutiny?
Yes. The DIF's financial records are examined regularly by the Massachusetts Commissioner of Banks, and audited annually by an independent auditor.
If an FDIC/DIF bank ever got into financial trouble, how would I get my money?
Based on past experience, arrangements would be made for all deposits to be automatically transferred to another bank. All of your deposit funds would be available with no interruption of service.
I'd like to buy a CD for $125,000. Is it fully insured if I place it in one account, or will I need to open two accounts in different names?
You can buy a single CD for the entire amount. At an FDIC/DIF member bank your deposits are fully insured, even if they exceed $100,000.
Does the FDIC or the DIF insure investments in bank mutual funds?
No. Both FDIC and DIF insurance only cover deposits, and do not extend to bank mutual fund investments.
For additional information, please call FDIC at (781) 794-5500 or DIF at (781) 938-1984.
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