Depositors Insurance Fund (DIF) FAQs
At Fidelity Bank, we understand the importance of financial security and peace of mind. That’s why we are proud to offer our clients a unique combined deposit insurance coverage through the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF). This coverage provides the best deposit insurance available and ensures that every dollar you deposit with us is safe, secure, and 100% insured.
To help you better understand our unique combined deposit insurance coverage, we have compiled a few frequently asked questions below:
Q. What is the FDIC?
A. The Federal Deposit Insurance Corporation (FDIC) is a U.S. government agency that provides deposit insurance to protect depositors in the event of a bank failure. Each depositor is insured up to $250,000 per bank.
Q. What is the DIF?
A. The Depositors Insurance Fund (DIF) is a private, industry-sponsored insurance fund that insures all deposits above Federal Deposit Insurance Corporation (FDIC) limits. The DIF has been insuring deposits since 1934 and is only available on deposits in Massachusetts-chartered savings and co-operative banks.
Q. What does it mean to be a member of both FDIC and DIF?
A. Fidelity Bank is a member of both the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF). That means your deposits and accrued interest are fully insured without any limit or exception. Your deposits are insured by the FDIC up to $250,000 and anything above that amount is insured by the DIF.
Q. Are there any limits to the deposit insurance coverage?
A. No, there are no limits to the deposit insurance coverage with our unique combined FDIC and DIF membership. Whether you deposit $100,000 or $10,000,000, every dollar you deposit with us is safe, secure, and 100% insured.
Q. Why aren’t more banks members of the DIF?
A. The DIF insurance is available only on deposits in Massachusetts-chartered savings and co-operative banks. As a member of both the FDIC and the DIF, we’re able to provide our deposit clients with full protection. You’re covered down to the last penny, no extra cost and no matter the account type – personal or business.
Q. I am a depositor at an out-of-state branch of a DIF member bank. Are my deposits covered by DIF insurance?
A. Yes. As a depositor in a DIF member bank, your deposits are fully insured. DIF coverage is not affected by where a depositor resides or where a member bank branch is located.
Learn more at https://www.difxs.com/DIF/DIFFAQs.aspx
