Protecting Your Assets: How FDIC and DIF Protect Your Deposits

Submitted by Dana RobbPrint Story | Email Story
In this time of economic uncertainty, keeping your money secure should be a top priority. The Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF) play crucial roles in safeguarding your deposits.
 
FDIC Insurance: Your First Line of Defense
More than just a sticker on the door at your bank, the FDIC, an independent government agency, provides insurance coverage for deposits at member banks. As of 2025, the FDIC insures up to $250,000 per depositor, per institution, and ownership category. This means if you have two different types of accounts (e.g. savings and a CD) at the same bank, you only receive $250,000 of insurance for these accounts even if you have more than this amount deposited. 
 
FDIC insurance is automatic for covered accounts at member banks for individual and business customers, meaning there's no cost to you for the protection. Covered accounts include:
  • Checking accounts
  • Savings accounts
  • Money market deposit accounts (MMDAs)
  • Certificates of deposit (CDs)
  • Certain retirement accounts, such as IRAs invested in CDs
In instances where an account has more than one owner, the $250,000 coverage per ownership still applies.
 
For example, a joint account with two owners could be insured up to $500,000 ($250,000 per owner). Similarly, a trust account with three beneficiaries could be insured up to $750,000. The only limitation is that the maximum insurance coverage for a trust owner with five or more beneficiaries is $1,250,000 per owner for all trust accounts held at the same bank. You can add more than five beneficiaries, but the coverage will not exceed $1,250,000.
 
Depositors Insurance Fund (DIF): Extra Protection for Massachusetts residents
If you're in the fortunate position to have deposits exceeding the FDIC limit, the Depositors Insurance Fund (DIF) provides additional security. A private, industry-sponsored insurance fund unique to Massachusetts, DIF covers deposits above the FDIC insurance amount at DIF member institutions including community savings and cooperative banks, regardless of the amount.
 
It's important to note that while not all banks are members of DIF, all DIF members are FDIC members. If having deposit insurance for the full amount of your deposit accounts is important to you, please inquire with your financial institution to verify your coverage.
 
Maximize Your Protection
If your bank is not a DIF member, you can take other steps to boost your asset protection. For example, if your assets exceed the FDIC limit, you can spread them across multiple banks to secure full protection. You can also consider different ownership categories to increase coverage.
 
The Exceptions to and Lengths of Protection
While FDIC and DIF provide extensive protection, some investment and other assets are not covered. These include:
  • Mutual funds
  • Stocks and bonds
  • Annuities and life insurance policies
  • Crypto assets
  • Contents of safe deposit boxes
For a complete picture of your current FDIC coverage, click here to access the FDIC calculator. For a list of FDIC-insured banks, click here. For DIF-member banks, click here. Again, any deposit in any amount held at a DIF-member bank is fully insured.
 
Like any insurance, FDIC and DIF are resources you hope you never need. But unlike other insurances, they're free. By understanding how they work, you can strategically manage your deposits, safeguard your assets, and enjoy peace of mind even in turbulent times.

Dana Robb is the Vice President, Retail Banking & Operations at Pittsfield Cooperative Bank. He has twenty years of experience in consumer and small business banking.





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District Moving On From Allegations Against PHS Administrator

By Brittany PolitoiBerkshires Staff

PITTSFIELD, Mass. — The district is "moving on" from unsubstantiated allegations against two Pittsfield High School administrators, saying there is no threat.

Dean of Students Molly West returned to work last week after being put on leave in December. The Department of Children and Families has cleared West and Vice Principal Alison Shepard of misconduct claims that surfaced after another PHS dean was arrested and charged by the U.S. Attorney's Office for allegedly conspiring to traffic large quantities of cocaine.

School Committee Chair William Cameron on Wednesday emphasized that when such an investigation finds no evidence of wrongdoing, fundamental fairness and due process prohibits taking punitive action simply because of allegations. Reportedly, West was also investigated and cleared in the past.

"The circumstances of Mrs. West being placed on administrative leave don't need to be recited here," he said.

"Social media allegations made against her in December, which then regrettably were widely publicized, were not new. They had been heard, investigated, and found meritless by other school districts many years ago, nevertheless, they were disinterred recently by someone providing neither evidence nor a credible source and then reinvestigated twice in the last three months."

Senior Emma Goetze said she was "appalled, deeply disappointed, and frustrated that an administrator who has been placed on leave, someone who has caused significant discomfort and distress to so many students, has been allowed to return to our building."

"I understand that there is an investigation and acknowledge that this individual was cleared but it feels incredibly unjust to me and to many of my peers that despite everything, this person is being given the opportunity to come back," she said. "It's important to recognize that even though an investigation may have found no wrongdoing, that doesn't change the reality of how this individual's presence makes many students feel."

Investigations led by DCF and retired Superior Court Judge Mary-Lou Rup concluded that there is no evidence to substantiate the accusations.

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