Deposit Insurance

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. Depositors may qualify for more coverage if they have funds in different ownership categories and all FDIC requirements are met. There is no need for depositors to apply for FDIC insurance or even to request it; coverage is automatic, up to the insurance limits described above, whenever a deposit account is opened at an FDIC-insured bank or savings association.


To learn more about the FDIC's insurance coverage rules and requirements, go to www.fdic.gov/deposit/deposits.


To calculate your deposit insurance coverage use the FDIC's Electronic Deposit Insurance Estimator (EDIE) at www.fdic.gov/edie.


Notice of Changes in Temporary FDIC Insurance Coverage for Transaction Accounts

By federal law, as of 1/1/2013, funds deposited in a noninterest bearing transaction account (including an IOLTA/IOLA) will no longer receive unlimited deposit insurance coverage by the FDIC. Beginning 1/1/2012, accounts will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000) for each deposit insurance ownership category.


The term "noninterest-bearing transaction account" includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts ("IOLTAs"). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts and money-market deposit accounts.


For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.


Depositor's Insurance Fund (DIF)

All deposits above the FDIC limit are insured in full by the Depositor's Insurance Fund. The combination of FDIC and DIF insurance provides customers of Massachusetts-chartered savings banks with full deposit insurance on all their deposit accounts. 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. To learn more about DIF visit www.difxs.com.