We want to ensure our customers have a strong knowledge of their deposit security with Mechanics Cooperative Bank. We are proud to be a member of both the FDIC (Federal Deposit Insurance Corporation) and DIF (Deposit Insurance Fund), automatically providing our customers coverage on 100% of their deposits with us. Learn more about what this means for your money deposited with us versus other banks that offer different deposit insurance levels.

FDIC Insurance
As a member of the FDIC, a bank has insured each customer’s deposited funds up to $250,000 for each account ownership category. This coverage is backed by the U.S. government and is standard nationwide without the need for applications of forms. Check out these frequently asked questions from the FDIC to learn more!

Question: Is every financial product at a bank covered by the FDIC?
Answer: No; FDIC deposit insurance only covers certain deposit products, such as checking and savings accounts, money market deposit accounts, and certificates of deposit (CDs). FDIC deposit insurance does not cover investment products that are not classified as deposits, such as mutual funds, annuities, life insurance policies, stocks, and bonds.

Question: Can I have more than $250,000 of deposit insurance coverage at one FDIC-insured bank?
Answer: Yes; The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, and per ownership category. Deposits held in different ownership categories are separately insured, up to at least $250,000, even if held at the same bank. For example, a revocable trust account (including living trusts and informal revocable trusts commonly referred to as payable on death (POD) accounts) with one owner naming three unique beneficiaries can be insured up to $750,000.

Find more FAQs at FDIC.gov

DIF Insurance
In Massachusetts, banks that are members of the DIF provide their customers full insurance on deposits and accrued interest without limit or exception, with the FDIC insuring each depositor to at least $250,000 and the DIF insuring any amount above the FDIC insurance amount. The DIF is a private, industry-sponsored insurance company, not backed by the federal government or the Commonwealth of Massachusetts, requiring no forms, applications, or special account title requirements. Check out these frequently asked questions from the DIF to learn more!

Question: Are all types of deposit accounts fully insured in a bank providing both FDIC and DIF insurance?
Yes; All types and classes of personal and business deposit accounts are covered, including savings accounts, checking and NOW accounts, certificates of deposit (CDs), money market deposit accounts, and retirement deposit accounts.

Question: I am a depositor at an out-of-state branch of a DIF member bank. Does DIF insurance cover my deposits?
Yes; Several DIF member banks have branches in neighboring states. 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.

Question: Does the DIF insure investments in bank mutual funds or annuities?
Answer: No; the FDIC and the DIF insure only bank deposits and do not insure mutual funds or annuity products.

Find more FAQs at difxs.com

As a consumer or business, you must know the protection you benefit from with your current financial institution. If you’re unsure whether your financial institution is a member of the DIF or a similar organization, this information can commonly be found on their website or by giving your local branch a call.

Have more questions about your deposit security? As a member of the FDIC and DIF, Mechanics Cooperative Bank is committed to protecting 100% of your deposited funds!