FDIC Insurance Coverage Limit Increased to $250,000

On July 21, 2010, the President signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act. Section 335 of the Dodd-Frank Act made permanent the standard maximum deposit insurance amount of $250,000.

Equitable Cooperative Bank Deposits Insured in Full

Thanks to a unique combination of deposit insurance safeguards, each depositor at Equitable Cooperative Bank is insured – regardless of the number of accounts or the total funds deposited.

It works like this: the Federal Deposit Insurance Corporation (FDIC) insures every depositor’s accounts up to $250,000. In addition, FDIC insures traditional and Roth IRA accounts separately for up to $250,000. At Equitable Cooperative Bank, however, amounts in excess of the FDIC limit per depositor are covered by the Share Insurance Fund (SIF). The result is that every depositor’s accounts are completely protected – without limitation.

The FDIC was established by the United States Congress in 1933 with a mission to insure bank deposits. Originally set at $2,500, the FDIC’s insurance limit has increased over time to the current coverage of $250,000 per depositor along with an additional $250,000 in coverage for traditional and Roth IRAs.

The Cooperative Central Bank was established by the Massachusetts Legislature in 1932 and its Share Insurance Fund started insuring deposits in 1934. Today, the SIF is a private insurer covering over $2.5 billion of depositors’ funds in excess of the FDIC limit, in 57 Massachusetts chartered banks.

FDIC Transaction Account Guarantee Program

Please be advised that after December 31, 2009 funds held in noninterest-bearing transaction accounts will no longer be guaranteed in full under the Transaction Account Guarantee Program (TAG), but will be insured up to $250,000 under the FDIC general deposit rules.