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Securities

Keeping Your Money Safe: Bank Insurance Facts

Recent banking turmoil has raised concerns about the safety of investor bank deposits. If you’re wondering about the security of your money, see below for general banking insurance information that can help ease concerns.

Note: While this information can help you understand where and how your money is insured, it isn’t intended as personal financial advice or guidance. Consult your financial professional with any questions about your specific circumstances.

Bank Insurance 

Federal and state government agencies insure investor deposits at partner banks, up to a certain amount. 

  • The Federal Deposit Insurance Corporation (FDIC) insures every individual who deposits money in an FDIC-insured bank, up to $250,000 total, per account type.
  • If you have a joint account with your spouse at the same bank where you hold an individual account, the FDIC covers your joint account deposits up to $500,000, while still covering up to $250,000 for your individual account.
  • The FDIC also separately covers Individual Retirement Accounts (IRAs) up to $250,000, even if they are held at the same bank as your other individual and joint accounts.
  • In most cases, the FDIC will also cover trust accounts—like those held for your child—up to $250,000 per child. This includes some college savings accounts.
  • In Massachusetts, the Depositors Insurance Fund (DIF) will cover some deposits above the FDIC insurance amount. DIF insures all types of deposit accounts, including savings and checking accounts, certificates of deposit (CDs), money market accounts, and retirement deposit accounts (like IRAs).  You can view a list of DIF member banks here.

Credit Union Insurance

If you belong to a credit union, the National Credit Union Administration (NCUA) insures your deposits, instead of the FDIC.

  • NCUA-insured credit union members enjoy similar coverage to those who hold money in FDIC-insured banks.
  • In Massachusetts, both the NCUA and the Massachusetts Share Insurance Corporation (MSIC) insure credit union deposits. MSIC fully insures deposits at member credit unions above the federal insurance limit of $250,000.

The Massachusetts Division of Banks, a division of the Governor’s Executive Office of Consumer Affairs and Business Regulation, charters and regulates some banks and credit unions within the state. If you encounter issues with a state-chartered bank or credit union, you can file a complaint with the Division of Banks’ Consumer Assistance Unit.

If you have any questions, contact your financial professional or visit the links below: