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Unlimited deposit insurance? Yes, at some Mass banks.

Posted by Cheryl Costa August 5, 2008 10:00 AM

I've written about this before, but I am still getting questions so it makes sense to re-visit the topic of Depositors Insurance Fund (DIF) and Share Insurance Fund (SIF) coverage -- especially since this unique-to-Massachusetts insurance is now receiving national attention in publications like the Wall Street Journal.

In the way of background information: savings banks in Massachusetts offer additional deposit insurance in the form of DIF coverage and co-operative banks offer additional deposit insurance in the form of SIF coverage. Both DIF and SIF coverage is provided in addition to FDIC insurance and banks providing this coverage advertise that they provide customers with unlimited coverage on their accounts -- with no limits on account size or titling. This coverage is also extended to people who bank, but do not live, in Massachusetts.

People who have accounts over $100,000 (or IRAs over $250,000) at local banks may be leaving some of their money at risk if they are relying solely on FDIC insurance. In comparison, accounts at DIF and SIF insured institutions are covered for the full value of their accounts. For a list of the 70 or so DIF insured savings bank in Massachusetts, visit this website. For a list of SIF insured cooperative banks in Massachusetts, visit this website. The Wall Street Journal article states that Massachusetts is likely the only state in the country to offer unlimited deposit insurance at state-chartered banks so it looks like we are ahead of the curve on this issue.

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Local finance professionals share insights and advice on issues such as budgeting, managing debt, and retirement planning.
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About the contributors

Jill Boynton is co-founder of Cornerstone Financial Planning in Newington, N.H. Along with traditional financial planning services, Boynton provides analysis specifically for divorce.
Andrew Chan is the founder of Integrative Financial Advisors in Framingham. He provides comprehensive financial planning advice and investment management services. He has been an adviser for over 12 years and works with clients to integrate all aspects of their finances including investments, retirement, education funding, and tax planning.
Cheryl Costa is a managing director at AFW Wealth Advisors, which has offices in Natick and Purchase, N.Y. She advises clients on investing, education funding, and estate planning. She holds a master’s in business administration from Boston University.
Jamie Downey has been an accountant for more than 14 years. He's a partner at Downey & Co. in Braintree. Prior to joining the firm, he served as a manager in the audit department of accounting firm KPMG.

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