FDIC Insurance

PeoplesBank has strong financials, with over $4 billion in assets and a growing banking center network in Western Massachusetts and Connecticut. We are well capitalized, with capital ratios approximately twice the level required to be considered well capitalized by the FDIC. In addition, PeoplesBank is independently reviewed quarterly by Veribanc and BauerFinancial, Inc. Veribanc is a leader of bank safety ratings and research. The Veribanc report summarizes the financial condition of all Massachusetts banks based on information filed with the FDIC, thus serving as a good resource. We have consistently been rated as a Blue Ribbon Bank and color classified GREEN *** by Veribanc, which is the highest rating a bank can receive. BauerFinancial, Inc. is the nation’s premier bank rating firm and has consistently rated PeoplesBank 5-Stars based on its analysis of the bank’s financial condition as reported in its quarterly Call Report, signifying the bank is one of the strongest in the nation. The bank has consistently earned the 5-Star Superior rating.

FDIC deposit insurance protects bank customers in the event that an FDIC-insured depository institution fails. Bank customers don’t need to purchase deposit insurance; it is automatic for any deposit account opened at an FDIC-insured bank. Deposits are insured up to at least $250,000 per depositor, per FDIC-insured bank, per ownership category.

Deposit insurance is calculated dollar-for-dollar, principal plus any interest accrued or due to the depositor, through the date of default. For example, if a customer had a CD account in her name alone with a principal balance of $195,000 and $3,000 in accrued interest, the full $198,000 would be insured.

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects depositors against the loss of insured deposits if an FDIC-insured bank fails. FDIC deposit insurance is backed by the full faith and credit of the United States government, and covers checking and savings accounts, money market deposit accounts and certificates of deposit (CDs). Coverage is automatically applied to all accounts; depositors do not need to apply for these insurances.

Coverage is automatic whenever a deposit account is opened at an FDIC-insured bank. If you want your funds insured by the FDIC, simply place your funds in a deposit account at an FDIC-insured bank and make sure that your deposit does not exceed the insurance limit for that ownership category. See “Are My Accounts Insured by the FDIC?” for more information about the types of insurable products that are covered by FDIC insurance and the amount of deposit insurance coverage that may be available under FDIC’s different ownership rights and capacities. To calculate your specific deposit insurance coverage, you can use the FDIC's Electronic Deposit Insurance Estimator (EDIE).

No. FDIC deposit insurance only covers certain deposit products, such as checking and savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs). Investment products that are not deposits, such as mutual funds, annuities, life insurance policies and stocks and bonds, are not covered by FDIC deposit insurance. See “Financial Products that Are Not Insured by the FDIC” for more information about uninsured financial products.

Account ownership generally means the manner in which you hold your funds at the bank. Ownership categories include:

• Single accounts which are owned by one person.
• Joint accounts which are deposit accounts owned by two or more people.
• Trust accounts, including revocable trust and irrevocable trust.
• Business accounts are deposit accounts owned by a corporation, partnership, or unincorporated association.