DIF Update

The DIF is a private industry sponsored insurance fund that insures all deposit accounts above FDIC limits at its member banks. For customers of member banks, coverage is automatically applied to all accounts; depositors do not need to apply for the insurance. All DIF member banks are also members of the FDIC.

Due to the enormous success of our deposit growth PeoplesBank has exceeded the maximum aggregate deposit limit permitted by the DIF.

• PeoplesBank officially exited the DIF at 11:59 p.m. local time on July 31, 2024. Accounts opened after this date and time are not covered by DIF insurance.  
• Existing balances above $250,000 in checking, savings and money market accounts at PeoplesBank as of 11:59 p.m. local time on July 31, 2024, will continue to be covered by DIF insurance for one full year (“grace period”), until July 31, 2025. If funds are added to existing checking, savings or money market accounts during the grace period, they will not be insured by DIF.
• Certificates of Deposit (CDs) opened on or before 11:59 p.m. local time on July 31, 2024 will continue to be insured by DIF until maturity.

Deposits held with PeoplesBank in a checking, savings, money market account or a certificate of deposit (CD) will continue to be covered by the FDIC up to $250,000 per depositor, per ownership category.

• There may be options available to restructure your deposits into different ownership categories to qualify for additional insurance from the FDIC. If you have any questions, please call 413.538.9500 or visit your local PeoplesBank banking center to discuss how to maximize your FDIC insurance coverage.
• The FDIC has an online calculator to help determine coverage amounts. You can find the tool known as the Electronic Deposit Insurance Estimator here. 
• For customers who have additional deposit insurance needs, enhanced FDIC insurance coverage may be obtained through our reciprocal deposit program. For more information click here.

No. It is because of our financial strength and growth that we are no longer members of the DIF. Over the years, several Massachusetts banks have been required to exit the DIF as a result of growing beyond the DIF’s aggregate deposit limit.

All deposits at PeoplesBank are insured through the Federal Deposit Insurance Corporation (FDIC), which covers up to $250,000 per depositor, per ownership category.

No, our exit from the DIF was unrelated to the recently announced merger of PeoplesBancorp, MHC and SSB, MHC. PeoplesBank's exit from DIF does not impact Cornerstone Bank or its customers.

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.

FDIC insurance does not cover other financial products and services that banks may offer, such as stocks, bonds, mutual funds, life insurance policies, annuities or securities.