A Comprehensive Blanket of Insurance Covers Bank5 Connect Deposit Accounts

If you enjoy the convenience and features that Bank5 Connect has to offer, here’s another bonus that comes with our online-only banking – all your deposits are insured in full.AdobeStock_60654093

There’s no need to worry that your deposits are at risk at any time. When you place your money in a Bank5 Connect account, you can be assured that every penny is totally covered by deposit insurance.

That’s because Bank5 Connect is a Federal Deposit Insurance Corporation (FDIC) and Depositors Insurance Fund (DIF) member bank. This means each depositor is insured by the FDIC to $250,000. All deposits above this amount are covered by the DIF.

Simply put, there are no gaps in insurance coverage for Bank5 Connect customers’ deposit accounts. That’s about as risk free as you can get.

Plus, there is no dollar limit to the DIF’s coverage – the Fund covers everything above the FDIC limit of $250,000. What’s more, all deposits placed in a Bank5 Connect account are eligible for DIF coverage. That includes checking accounts, savings accounts, and certificates of deposit.

Another great feature of DIF coverage? There are no forms or applications to fill out to receive the insurance. It’s automatic and free.

Since the inception of both insurance programs, no depositor has ever lost a penny of FDIC- or DIF-insured deposits. That in itself is a remarkable track record.

How and why did each program come about? Here’s a quick overview.

The DIF was established by the Massachusetts legislature in 1934 as an alternative to the FDIC. At that time, Massachusetts savings banks, by state law, were not allowed to join the FDIC.

However, the law was changed in 1956 to allow Bay State savings banks to join the federal insurance program. For those that did, the DIF became known as an excess deposit insurer, meaning the Fund insured deposits in excess of the FDIC limit. By 1986, all DIF member banks had joined the FDIC.

Even though state law created the DIF, it is a private deposit insurance company and not backed by the state or federal government.

On the other hand, the FDIC is an independent agency of the United States government that protects you against the loss of your deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the U.S. government.

The FDIC was created as a result of widespread bank failures during The Great Depression in the 1920s and 1930s. In addition to establishing the agency, the Banking Act of 1933 also regulated the volatile banking industry and renewed the public’s confidence in the banking industry. The Banking Act of 1935 made the FDIC a permanent government agency.

So the next time you place money in one of your Bank5 Connect deposit accounts, take comfort in knowing that it has a total blanket of insurance coverage.

You can learn more about the FDIC at its website at www.FDIC.govAs a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon!

Additional details about the DIF are available at www.DIFxs.comAs a courtesy, you will be leaving Blog.Bank5Connect.com and going to another website. We have approved this site as a reliable partner, but you will no longer be under the security policy of Bank5Connect.com. Come back soon!

Ways to Cut Car Insurance Costs

If you’re in the market for auto insurance, doing your homework before picking a policy could save you enough money to fuel that new set of wheels for quite a few miles.

But choosing a policy that meets your exact needs can be tricky. How much coverage is adequate? What should the deductible be? Who’s a reliable provider?

And don’t forget all the different ways to enjoy discounts. A decent chunk of change can be saved by applying some or several of these cost-saving ideas:

  • Many providers offer discounts for those who set up automatic online bill pay. The same goes for opting to receive bills by e-mail instead of having paper bills mailed each month.
  • Insurance companies often offer deals when you obtain both car and homeowners insurance from them.
  • Getting insurance through a group plan – such as with a business, professional, or alumni group or association — can often lead to lower rates.
  • Compare premiums of different policy providers. Oftentimes a lesser known company may have rates that are lower than the more popular insurers.
  • Consider a higher deductible.
  • Check whether it’s cheaper to pay for a full year of coverage vs. paying monthly. Often administrative fees are tacked on to bills that are paid monthly.
  • Some providers offer discounts to students who achieve good grades in school, or for drivers over 50 who have a long track record of safe and responsible driving.
  • Maintain a good credit history. Many insurers will take this into account, especially since research shows that people with solid credit histories are likely to file fewer claims.
  • If you log low mileage, you may get a discount. Some providers will lower rates for those who drive less or who car pool.
  • Avoid paying for more coverage than you need. For instance, if you have towing services available through a car club such as AAA, opt out of this coverage in the policy.
  • It may pay to shelter your car. Some providers will offer a discount for vehicles that are kept in a garage.
  • Security and safety features could translate into savings. Theft deterrent systems and antilock brakes are just a few of the features that could lower insurance premiums.
  • Many providers will offer discounts to those who haven’t had any accidents or moving violations within a certain period, such as five years or more.

Once you have selected a policy, review it at least annually to ensure your coverage is in line with what you really need and is still reasonably priced.