FDIC Deposit Insurance Coverage
The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects the funds depositors place in banks and savings associations. FDIC insurance is backed by the full faith and credit of the United States government. Since the FDIC was established in 1933, no depositor has ever lost a single penny of FDIC-insured funds.
FDIC insurance covers all deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit. FDIC insurance does not cover other financial products and services that banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or securities.
The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
The FDIC provides separate coverage for deposits held in different account ownership categories. Depositors may qualify for more coverage if they have funds in different ownership categories and all FDIC requirements are met. (For details on the requirements, go to FDIC.gov.)
Depositors Insurance Fund (DIF)
The DIF is a private, industry-sponsored insurance fund that insures all deposits above Federal Deposit Insurance Corporation (FDIC) limits at Massachusetts-chartered savings banks. The DIF has been insuring deposits since 1934.
All DIF member banks are also members of the FDIC. Each depositor is insured by the FDIC to at least $250,000. All deposits above the FDIC insurance amount are insured by the Depositors Insurance Fund (DIF).
The combination of FDIC and DIF insurance provides customers of Massachusetts-chartered savings banks with full deposit insurance on all their deposit accounts. No depositor has ever lost a penny in a bank insured by both the FDIC and the DIF.
DIF insurance coverage requires no applications or special forms. Depositors automatically receive this added insurance benefit at no cost whenever they make a deposit to a new or existing account at a DIF member bank.
The FDIC was established by the U.S. Congress in 1933 with a mission to insure bank deposits. 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 $7 billion of depositors' funds in excess of the FDIC limit, in over 60 Massachusetts chartered savings banks.
Electronic Deposit Insurance Estimator (FDIC) Depositors Insurance Fund
Frequently Asked Questions
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.
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.
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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