All Deposits Insured In Full

Questions and answers about deposit insurance at your Massachusetts co-operative bank.

A unique combination:

Federal Deposit Insurance Corporation (FDIC) and The Cooperative Central Bank Share Insurance Fund (SIF).

What type of deposits are insured?

Every deposit you make in a Massachusetts cooperative bank is insured in full, including deposits in savings accounts, checking and NOW accounts, money market accounts and term deposit accounts.

How much deposit insurance protection do I have?

All deposits, including accumulated interest, are insured in full without restriction. There are no maximum account limitations or amount limitations.

Who actually insures deposits in your Massachusetts cooperative bank?

The Federal Deposit Insurance Corporation (FDIC) and the Share Insurance Fund of The Cooperative Central Bank (SIF) provide insurance of your deposits.

The FDIC is an independent agency of the U.S. Government. It was established by Congress in 1933 to insure bank deposits.

The Cooperative Central Bank is a private special act corporation established in 1932 to provide a source of cash reserves for all cooperative banks in Massachusetts.

In March 1934, the Share Insurance Fund of The Cooperative Central Bank was established in order to insure all deposits in all Massachusetts cooperative banks. Every Massachusetts cooperative bank is, by law, a member of the fund.

Deposits in every Massachusetts cooperative bank are insured by Member FDIC / Member SIF insurance. The FDIC insures the first $250,000 of "self-directed" retirement accounts and the first $100,000 of deposits in each other ownership category; the Share Insurance Fund (SIF) of The Co-operative Central Bank insures all deposits above that amount.

Therefore, a person may hold or have an interest in more than one separately insured account in the same insured cooperative bank, but in all cases, the amounts in excess of the FDIC coverages are insured in full by the SIF.

How are depositors protected against loss?

Cooperative banks are regularly examined by Federal and State banking agencies for compliance with safe and sound banking practices. However, should financial difficulties arise, the Cooperative Central Bank can assist in restructuring a member bank to regain a sound condition. The bank can also be merged or liquidated; in any event, as long as the deposits remain in member cooperative banks, they will continue to be insured by the FDIC and SIF, as explained previously.

From its inception, the Share Insurance Fund of The Cooperative Central Bank has preserved the enviable record of our cooperative banks that "no one has ever lost a dollar in any Massachusetts cooperative bank."

Are there additional safety features in Massachusetts cooperative banks?

In addition to deposits insured in full, there are a number of additional checks and balances in the Massachusetts banking system which make the Massachusetts chartered cooperative bank system one of the safest and soundest banking systems in the country. Some of these features include legislative controls as provided by Massachusetts laws on banks and banking, regulatory controls by the supervision, examination, quarterly reporting and administrative rules and regulations by either the FDIC or the Commissioner of Banks for the Commonwealth of Massachusetts, external audit by independent public accountants and periodic member bank reporting to and monitoring by the SIF. All of these features have combined to preserve and protect the Massachusetts cooperative banking system over the years and contributed to the present strength of those banks and the underlying deposit insurance.

Is the Share Insurance Fund guaranteed by the Commonwealth of Massachusetts or any agency of the Federal Government?

The Share Insurance Fund of The Cooperative Central Bank is a private fund owned by the member cooperative banks. As such, there is no liability on the part of the federal or state government to support or guarantee it.

Who manages and directs the Share Insurance Fund of The Cooperative Central Bank?

The law provides that it shall be managed by a board of directors consisting of nineteen members elected by the cooperative banks. Fifteen of these members are officers and/or directors of the member banks and four of these members are from the public sector. The board appoints a chief executive officer who has the responsibility of operating the Share Insurance Fund in accordance with federal and state laws, the corporate by-laws, and the policies and direction of the board.

The Fund is exclusively owned by the Massachusetts cooperative bank industry, solely for the mutual benefit of all their depositors to provide insurance in full of deposits under Massachusetts law.

How does this deposit insurance coverage compare with other existing deposit insurance?

This unique combined insurance coverage afforded by the FDIC and the Share Insurance Fund of The Cooperative Central Bank provides the best deposit insurance available - Insured in Full - whether deposit balances are held in passbook, statement or certificate type accounts, or in any combination of these accounts, full deposit insurance protection is provided.

How are the assets of the Share Insurance Fund invested?

In short-term obligations of the United States Government, federal agencies, certificates of deposit, repurchase agreements and certain other secure and conservative investments.