When looking for a savings bank to satisfy your needs, research what type of insurance the bank offers to its depositors because this could be your safety net for the future.

For those of you who have a little bit more money and you want to put it into a bank account that you can rest easy with, then make sure it’s covered by DIF Insurance.

Although less known and widespread, DIF Insurance has protected depositors since 1932, when their predecessor was created. Essentially, DIF Insurance is a safety net for Massachusetts-chartered savings banks.

It protect depositors with accounts between $1 million and $10 million dollars, so in case the bank goes bankrupt, those depositors are completely covered. Ever since DIF’s creation, their depositors have not lost a single penny!

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Table of Contents

Key Features of DIF Insurance

Location and Residency. DIF only protects deposits with Massachusetts-chartered savings banks, so if you live elsewhere, then DIF cannot cover you. However, DIF doesn’t have any location restrictions, so even if you live in Texas, but deposit your money at a Massachusetts-charted savings bank, it will be protected.
No Added Cost. There is no surcharges or fees required to actually take advantage of this tool. DIF insurance is free to all depositors.
No Application Requirements. There is no application required to enroll in DIF insurance. It automatically covers any new account opened in Massachusetts-chartered savings banks. Simply open an account to get started.
No Coverage for Investments. Similar to FDIC insurance, DIF insurance doesn’t cover investments in mutual funds, annuities, equities, bonds or other investment products. Basically, only deposit accounts, such as checkings, savings, CDs, and money markets, are covered.

Funding Mechanisms & Investments

Although DIF was created by a legislative act, the organization today operates solely as a private organization funded by member banks. How this works is every DIF member must contribute an annual assessment, or payment, to the general fund. Each member’s payment is based on the total value of their customers’ deposits.

DIF invests their assessed funds into three main types of securities: short- and long-term U.S. treasuries, debt obligations issued by U.S. government-sponsored enterprises, and privately issued mortgage- and asset-backed securities.

Supervision & Member Oversight

Who oversees DIF you might wonder? Well to answer your question, it is the Massachusetts Division of Banks, a state regulatory authority. Additionally, they must submit to reviewing by independent audits by a private, third party auditor.

For their day to day operations, it is run by a president and an executive team. The team will normally consist of members of other DIF banks and major employers in Massachusetts.

Bottom Line

If you’re planning on opening a savings account, make sure to open it in a bank that’s covered by DIF Insurance! Being covered by this insurance gives you peace of mind when it comes to your savings because things that might affect your financial institution, like the recession of 2008, will leave your savings account unaffected.

Take advantage of this coverage to secure your money, so that you can have a secure future. If this information interests you, check out our Best Business Bank Bonuses and Best Bank Savings Rates to make the most out of your bank account. Take a look at our list of Credit Card Bonuses here on HMB!