You wouldn’t think of going out in the rain with an umbrella that has a big hole in it. That’s hardly protecting yourself from the elements.
It makes sense to take the same approach when it comes to your money. You wouldn’t want to place it in a bank account that doesn’t offer full protection of your funds through deposit insurance. Fortunately, you’re assured of complete insurance coverage with a BankFive deposit account.
BankFive is a Federal Deposit Insurance Corporation (FDIC) and Depositors Insurance Fund (DIF) member bank. As a result, each depositor is insured by the FDIC to $250,000. All deposits above this amount are covered by the DIF. This combination of insurance provides BankFive customers with full deposit insurance on all of their deposit accounts.
It’s important to note that there is no dollar limit to the DIF’s coverage – the Fund covers everything above the FDIC limit of $250,000. And even though the DIF is a Massachusetts-based company, you don’t have to be a resident of The Bay State to take advantage of its coverage. All you have to do is have deposits with a DIF-member bank, such as BankFive.
All types and classes of deposit accounts are covered by the DIF insurance, including savings and checking accounts, certificates of deposit, and money market deposit accounts. And coverage is automatic for each and every deposit. There are no forms or applications to fill out to receive the insurance.
Looking for even more reassurance that your money is fully protected? Consider this: no depositor has ever lost a penny of FDIC- or DIF-insured deposits.
Here’s some more information about the Federal Deposit Insurance Corporation and Depositors Insurance Fund so you have a better understanding of their roles in protecting consumers’ finances.
The FDIC is an independent agency of the United States government that protects you against the loss of your deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the U.S. government.
Widespread bank failures during The Great Depression in the 1920s and 1930s led to the creation of the FDIC. In addition to establishing the agency, the Banking Act of 1933 also regulated the volatile banking industry and renewed the public’s confidence in the banking industry. The Banking Act of 1935 made the FDIC a permanent government agency.
The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if these products are purchased from an insured bank or savings association.
Ironically, the DIF was established by the Massachusetts legislature in 1934 as an alternative to the FDIC. At that time, Massachusetts savings banks, by state law, were not allowed to join the FDIC.
In 1956, the law was changed to allow Massachusetts savings banks to join the FDIC. For those that did, the DIF became known as an excess deposit insurer, meaning the Fund insured deposits in excess of the FDIC limit. By 1986, all DIF member banks had joined the FDIC.
Even though state law created the DIF, it is a private deposit insurance company and not backed by the state or federal government.
You can learn more about the FDIC at its website at www.FDIC.govAs a courtesy, you will be leaving Blog.BankFive.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of BankFive.com. Come back soon!
Additional details about the DIF are available at www.DIFxs.comAs a courtesy, you will be leaving Blog.BankFive.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of BankFive.com. Come back soon!