Deposit Insurance

Everything You Need to Know About the Security of Your Deposits

All BankGloucester depositors are insured in full, without limit or exception by the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF).

Like most US banks, your deposits at BankGloucester are insured by the FDIC for up to $250,000 per account, but we take it a step further.

Deposits at BankGloucester above the FDIC balance limit are covered in FULL by the Depositors Insurance Fund (DIF). The DIF is a private, industry-sponsored excess deposit insurance company. Created by a special act of the Massachusetts legislature in 1932, the DIF began operations as a primary insurer in 1934. Today, the DIF insures all deposits in its member banks that are in excess of the FDIC limits.

DIF insurance is available only on deposits in Massachusetts-chartered savings and co-operative banks. By combining FDIC primary insurance and DIF excess deposit insurance, banks which are members of both organizations provide their depositors with full insurance.

Frequently Asked Questions (FAQ)

What does BankGloucester’s membership with FDIC and the DIF mean for me?

As a member of both the FDIC and the DIF, BankGloucester provides full insurance for our customers’ deposits and accrued interest without limit or exception. Each depositor is insured by the FDIC up to at least $250,000. All deposits above the FDIC insurance amount are insured by the Depositors Insurance Fund (DIF).

Click below for more information about FDIC Insurance:

Which accounts are covered by the FDIC and DIF?

All types and classes of deposit accounts, both personal and business, are covered including savings accounts, checking accounts, certificates of deposit (CDs), money market deposit accounts, and retirement deposit accounts.

NOTE: Services are not insured by the FDIC, DIF or any government agency.

Are there any forms, applications, or special account titles required to receive full deposit insurance?

No. There are no forms, applications, or special account title requirements. Full deposit insurance protection works simply. You automatically receive this added insurance benefit when you make any deposit at BankGloucester.

Does the DIF insure investments in bank mutual funds or annuities?

No. Both the FDIC and the DIF insure only bank deposits, and do not insure bank mutual funds or annuity products.

How financially strong is the DIF?

No depositor has ever lost a penny in a bank insured by both the FDIC and the DIF. The DIF has approximately $500 million in assets. During the recession of the early 1990s, the worst financial period in the history of the Massachusetts savings bank industry, the DIF paid out more than $50 million to protect over 6,500 depositors in 19 failed member banks. Yet the DIF emerged from this period financially stronger than before the recession began.

Is the DIF a federal or state agency?

No. The DIF is a private, industry-sponsored insurance company and is not backed by the federal government or the Commonwealth of Massachusetts.

How are the assets of the DIF invested?

Massachusetts law and the DIF’s investment policies restrict the DIF to investments suitable for an organization that insures the public’s deposits, primarily U.S. Treasury and federal agency obligations, and obligations fully guaranteed by the U.S. government. DIF investments are regularly reviewed by its Board of Directors to assure conformity with both the law and DIF investment policies.

If you have any questions about deposit insurance, please contact us by email at, or by phone at (978) 283-8200