About Us
Established by the Massachusetts legislature in 1934, the Depositors Insurance Fund (DIF) is a private, industry-sponsored insurance fund that insures all deposit accounts above Federal Deposit Insurance Corporation (FDIC) limits at its member banks.
The unique combined insurance coverage afforded by the FDIC and the DIF ensures deposit balances are fully protected.
Since the DIF was established, no depositor has ever lost a penny in any Massachusetts savings or cooperative bank.
Frequently Asked Questions
Q: How do I know if my bank provides DIF insurance coverage?
A: DIF member banks include savings and cooperative banks chartered (formed) in Massachusetts. If you’re not sure your bank is a member, you can ask a bank representative, look for “Member DIF” on your bank’s website or marketing materials, or click here to view a list of current member banks.
Q. How does DIF insurance protect me?
A. The FDIC insures each depositor to at least $250,000 and the DIF insures deposits in excess of these amounts. With the combination of FDIC and DIF insurance, you have peace of mind that your deposit accounts are insured in full.
Q: Are all types of deposit accounts at member banks covered by DIF insurance?
A: DIF insurance protects all traditional deposit accounts at member banks including savings accounts, checking accounts, certificates of deposit, and money market accounts held by individuals, businesses and trusts, as well as government accounts.
Q: Does DIF insurance protect all types of financial products?
A: No. DIF insurance covers only traditional deposit accounts. Other financial products, such as mutual funds, annuities, life insurance, safe deposit box contents, stocks, bonds, or crypto assets are not covered by DIF insurance.
Q: Do I have to apply to get deposit insurance from the DIF?
A: No. There are no forms or application requirements. Excess deposit insurance protection is automatic whenever a deposit account is opened at a DIF member bank.
Q: Do I have to be a Massachusetts resident to have my deposits insured by the DIF?
A: No. DIF coverage is not affected by where a depositor resides or where a member bank branch is located.
Q: Does the DIF monitor the financial condition of member banks?
A: Yes. The DIF has an ongoing monitoring process that reviews various data to assess the financial condition, performance, and risk profiles of its member banks and the industry as a whole. In addition, formal examinations of all DIF member banks are conducted regularly by the FDIC, the Massachusetts Division of Banks, and the Federal Reserve Bank of Boston.
Q: Is the DIF a federal or state agency?
A: Neither. The DIF is a private industry-sponsored insurance company that is not backed by the federal government or the Commonwealth of Massachusetts.
Q: Is the DIF subject to any oversight?
A: The DIF is examined regularly by the Massachusetts Division of Banks and audited annually by an independent auditor. Each year the DIF publishes an Annual Report with financials and other information.