Being an online-only bank, it’s not uncommon for the question to arise – how safe is my money with Bank5 Connect?
Rest assured your funds are probably safer than anywhere else because Bank5 Connect is not only a member of the Federal Deposit Insurance Corporation (FDIC), but also is part of the Depositors Insurance Fund (DIF), a private, industry-sponsored insurance fund that insures all deposits above FDIC limits at Massachusetts-chartered savings banks.
While many larger banks are just members of FDIC, smaller ones in Massachusetts like ours have coverage under both. So what does that mean? While each depositor is insured by the FDIC to at least $250,000, all deposits above the FDIC insurance amount are insured by the Depositors Insurance Fund.
Having both DIF and FDIC insurance is the ultimate security blanket. It’s full deposit insurance on all your deposit accounts. And no depositor with this kind of coverage has ever lost a penny in a bank insured by both the FDIC and the DIF, according to the Depositors Insurance Fund.
What’s more, DIF insurance coverage doesn’t require you to fill out any applications or special forms. You automatically receive this added benefit at no cost whenever you make a deposit to a new or existing deposit account with Bank5 Connect. And DIF coverage is not affected by where a depositor resides.
The types of deposit accounts that are covered under DIF and FDIC insurance include savings accounts, checking accounts, certificates of deposit (CDs), money market deposit accounts, and retirement deposit accounts.
By the way, the Depositors Insurance Fund is examined annually by the Massachusetts Division of Banks and audited by an independent auditor. And the fund has more than $350 million in assets.
The DIF doesn’t leave things to chance when it comes to protecting depositors’ money. The insurance company receives quarterly financial reports from its member banks. In addition, these banks undergo formal examinations regularly by the FDIC and the Massachusetts Division of Banks. Plus, the DIF Depositors Insurance Fund meets frequently with representatives of both agencies to review and evaluate the condition of its member banks.
It’s safe to say that with insurance coverage by the FDIC and DIF, there’s probably no safer way to protect your deposits than with Bank5 Connect.