Is the Money in My Account Safe?

4-Minute Read

Your financial institution is one of the safest places to store your hard-earned cash. The best part? All you have to do is open an account.

Your Money is Protected

There are two organizations, both backed by the United States government, that insure your money at participating institutions. The FDIC (Federal Deposit Insurance Corporation) provides coverage for banks and the NCUA (National Credit Union Administration) does the same for credit unions. These organizations both function as safety nets for your deposits.

At least $250k is protected by these institutions (and possibly a lot more, depending on the type of account). Because of this protection, insured banks and credit unions and the covered accounts within them are one of the safest places that you can keep your money. In other words, it's completely safe to keep your money in a financial institution where it's insured and protected.

Protected accounts include checking and savings accounts, money market deposit accounts, CDs, share certificates, IRAs, and more. Almost all banks and credit unions offer FDIC or NCUA protection to their accountholders. You can verify that you're covered by visiting your institution's website or by giving them a call. 

How Much Money Is Insured?

How much coverage you have depends on what ownership category your account falls into. If you have a savings account and a checking account, those are both in the single owner account category, so they would be insured for a total of $250,000. But if you had accounts in different categories—say a checking account and an IRA—each account would be insured for $250,000, meaning you would have a total of $500,000 of protection. The FDIC provides more information about deposit insurance on their website.

The vast majority of financial institutions and their account types are covered under these two organizations. But if you're worried at all about whether your institution or account is secure, check their website, talk with one of their representatives, or stop by a branch to confirm that your account is covered.

Are Trust & Joint Accounts Insured?

The rules change a little when it comes to joint accounts and trusts. Joint accounts are protected for $250,000 per owner. So if you have a joint account with your spouse, it would be insured for a total of $500,000. Trust accounts are generally insured for $250,000 per beneficiary. Meaning, if you have 3 beneficiaries listed in the trust, it would be protected for up to $750,000. In other words, only a trust’s beneficiaries are protected, not a trust’s owner.

How Can I Protect All My Money?

As a customer of Pittsfield Cooperative Bank (Co-op Bank), your deposits are insured in full. We are a member of the Depositors Insurance Fund (DIF), established by the Massachusetts legislature in 1934, that insures all deposit accounts above the FDIC limit. DIF member banks include savings and cooperative banks chartered in Massachusetts. This unique combined insurance coverage afforded by the FDIC and the DIF ensures deposit balances are fully protected. 

It should be noted that there are lots of specifics when it comes to FDIC, DIF and NCUA insurance. If you want to get more information about your situation and find out the best way to ensure that all of your money is protected, you should talk with your bank or credit union.

Disclaimer
While we hope you find this content useful, it is only intended to serve as a starting point. Your next step is to speak with a qualified, licensed professional who can provide advice tailored to your individual circumstances. Nothing in this article should be construed as financial or legal advice. Furthermore, while we have made good faith efforts to ensure that the information presented was correct as of the date the content was prepared, we are unable to guarantee that it remains accurate today. Neither Pittsfield Cooperative Bank or Banzai make any warranties or representations as to the accuracy, applicability, completeness, or suitability for any particular purpose of the information contained herein. Pittsfield Cooperative Bank and Banzai expressly disclaim any liability arising from the use or misuse of these materials and, by visiting this site, you agree to release us from any such liability. Do not rely upon the information provided in this content when making decisions regarding financial or legal matters without first consulting with a qualified, licensed professional.