March 13, 2023
Your Money is Safe – Avidia Bank Answers Your Questions About Deposit Protections Amid Bank Closings
We wanted to share a brief update given the news over the weekend of several bank failures. These banks primarily failed due to their exposure/involvement in cryptocurrency activities, but in the case of Silicon Valley Bank, also due to a lack of confidence by the depositors of the bank.
In plain, simple words: Your money is safe. How? Well, each Avidia 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 (DIF). The combination of FDIC and DIF insurance provides customers of our bank with full deposit insurance on all their deposit accounts. Please read some frequently asked questions below, to help further your understanding of what these terms means.
How does FDIC insurance work?
With FDIC insurance, your accounts are protected for up to $250,000 for each depositor and ownership category (joint account etc.). Amounts you have over that limit are protected by DIF insurance, which brings us to the next important question.
What is DIF insurance?
Avidia deposits that exceed the FDIC limits are covered by the Depositors Insurance Fund (DIF). The DIF is a private, industry-sponsored insurance fund that provides full insurance for your deposits (and accumulated interest) above FDIC limits at Massachusetts-chartered savings banks.
The DIF has been insuring deposits since 1932, and since that time no depositor has ever lost a penny in a bank insured by both the FDIC and DIF.
Are all my deposits fully protected by deposit insurance?
Yes, with FDIC/DIF insurance all of your deposits, including your savings accounts, checking accounts, certificates of deposit (CDs), money market deposit, and IRA accounts are fully protected.
What types of accounts are not protected by FDIC/DIF insurance?
Again, FDIC/DIF insurance protects all types and classes of deposit accounts, including savings accounts, checking accounts, certificates of deposit (CDs), money market deposit accounts, and IRAs. It does not cover mutual funds, stocks, bonds, annuities, or investments that are not deposit accounts.
Where can I obtain additional information about deposit insurance?
The FDIC has a team of experts available to answer your questions. Simply call 1-877-ASK-FDIC (1-877-275-3342) and ask to speak with a Deposit Insurance Subject Matter Expert. You can also visit the FDIC’s website to learn more. One tool available on the site is the Electronic Deposit Insurance Estimator (EDIE), which allows you to determine the protection you have.
We’re here for you today – and tomorrow. Honest to Goodness.
As an Avidia customer, you’ll never have to worry about our commitment to protecting you and your money. For over 150 years, we’ve been right here to help local people and businesses do their everyday banking and reach their financial goals. You can continue to count on us to serve you when you need us. For more information on your insurance coverage or to get assistance, please call us at (800) 508-2265, 24 hours a day, 7 days a week or email us using this webform here.