March 31, 2023

What You Need to Know About Deposit Insurance

Your financial security is important, and FDIC deposit insurance is a way that banks safeguard your deposits. With an uptick in recent news about deposit insurance, we would like to provide you with additional information about what deposit insurance is, and what your options are so that you can have peace of mind and confidence that you are fully covered. 

What is Deposit Insurance? 

The Federal Deposit Insurance Corporation (FDIC) provides insurance to depositors in FDIC-insured institutions. Insurance is automatically applied up to $250,000 per depositor per FDIC-insured institution per ownership category. In the unlikely event that a bank fails, the FDIC would pay out the insured amount to each depositor in that bank. FDIC insurance is considered the “gold standard” of deposit coverage, as it is backed by the full faith and credit of the United States government. 

Some financial institutions offer the option for depositors to receive additional deposit insurance above the automatic $250,000 limit. For example, there are programs that some banks offer to large depositors that cover deposits above the automatic FDIC limit with additional FDIC insurance through cash sweeps to other banks. Unique to Massachusetts, very small banks can participate in the Deposit Insurance Fund (DIF) that insures depositors above the FDIC limit.  

Find out exactly how your deposits are protected with FDIC insurance coverage 

You can use the FDIC’s Electronic Deposit Insurance Estimator (EDIE) to find out the exact amount of your deposits that are insured by the FDIC. Click here to use this tool and visit the FDIC website for examples of deposit relationship scenarios and options that may be available to you to restructure your accounts to achieve additional coverage. Remember that you have options to cover 100% FDIC insurance coverage on any deposits above the $250,000 threshold. 

Cape Cod 5 Depositors Protected with Options for 100% FDIC Insurance on Balances 

As a community bank, Cape Cod 5 cares about your money and keeping it safe just as much as you do. All deposits with Cape Cod 5 are automatically insured by the FDIC up to $250,000 per depositor per account ownership category – which covers the vast majority of our customers. For relationships above the threshold, Cape Cod 5 has partnered with IntraFi to offer programs that cover excess deposits at no cost to customers.  The coverage provides 100% FDIC insurance on deposit balances for depositors who elect to enroll.

Our team is here to help you understand these options and enroll you in the program that is right for you. Click here to learn more about how it works.

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