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Insurance FAQs

Customers of Massachusetts co-operative banks enjoy peace of mind knowing that their deposits are insured in full.

The Federal Deposit Insurance Corporation (FDIC) insures each depositor to at least $250,000. The Share Insurance Fund (SIF) of The Co-operative Central Bank insures all deposits above these amounts.

Here are answers to some questions you may have about this unique coverage:

What types of deposits are insured?
Every deposit you make in a Massachusetts co-operative bank is insured in full, dollar-for-dollar, without restriction. This includes deposits and accumulated interest in savings accounts, checking and interest-bearing transaction accounts, money market accounts, and term deposit accounts such as certificates of deposit. This protection is provided by a unique combination of coverage provided by the FDIC and the Share Insurance Fund of The Co-operative Central Bank.

What is the FDIC?
The FDIC is an independent agency of the United States government. It was established by Congress in 1933 to insure bank deposits.

What are The Co-operative Central Bank, and the Share Insurance Fund?
The Co-operative Central Bank is a private special act corporation. It was established in 1932 to provide a source of cash reserves for all co-operative banks in Massachusetts. The Share Insurance Fund was established by the Legislature in 1934 to provide protection for deposits in Massachusetts chartered co-operative banks.

How much does the FDIC insure?
FDIC insures each ownership category to at least $250,000. The most common ownership categories are single accounts, joint accounts, retirement accounts, trust accounts and corporate accounts. For more details regarding the FDIC’s most current account ownership definitions and coverage, please visit www.fdic.gov/deposit. In all cases, the amounts in excess of FDIC coverage are insured without limit by the Share Insurance Fund.

As a depositor, how am I protected against loss?
Co-operative banks are regularly examined by federal and state banking agencies for compliance with safe and sound banking practices. Should financial difficulties arise, The Co-operative Central Bank is positioned to help facilitate a merger, or restructure a member bank to sound condition. In any event, deposits continue to be insured by the FDIC and the Share Insurance Fund.

Does the Share Insurance Fund of The Co-operative Central Bank have a track record of success?
From its inception, the Share Insurance Fund has preserved the enviable claim of member co-operative banks that “no depositor has ever lost a dollar in any Massachusetts co-operative bank.”

Are there any additional safety features protecting the depositors of Massachusetts co-operative banks?
There are a number of additional checks and balances that make the state-chartered co-operative bank system one of the safest and soundest in the country. These include:

  • Legislative controls as provided by Massachusetts laws on banks and banking;
  • Regulatory controls by the supervision, examination, quarterly reporting and administrative rules and regulations of either the FDIC; the Federal Reserve Bank of Boston, or the Commissioner of Banks for the Commonwealth of Massachusetts;
  • External audits by independent public accountants; and
  • Periodic member bank reporting to, and monitoring by, The Co‑operative Central Bank.

Is the Share Insurance Fund guaranteed by the Commonwealth of Massachusetts, or by any agency of the federal government?
The Share Insurance Fund is a private fund owned by the member co-operative banks. As such, there is no liability on the part of state or federal government to support or guarantee it.

Who owns the Share Insurance Fund?
The Share Insurance Fund is exclusively owned by the Massachusetts co-operative bank industry, ­solely for the mutual benefit of all their depositors, providing deposit insurance in full under Massachusetts law.

Each depositor insured to at least $250,000 Temporarily increased from $100,000 to $250,000 through 12/31/2013. Backed by the full faith and credit of the United States government FDIC Federal Deposit Insurance Corporation www.fdic.gov The Co-operative Central Bank Share Insurance Fund All Deposits Insured In Full FDIC insures each depositor to at least $250,00 SIF insures all additional deposits
Share Insurance Fund The Co-operative Central Bank 75 Park Plaza Boston, MA 02116 (617) 695-0400