DIF FAQs

Effective April 25, 2025, Needham Bank will no longer be a member of the Depositors Insurance Fund (DIF). Below, you'll find answers to common questions about this change and what it means for you.

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What is DIF?

DIF is a private, industry-sponsored insurance fund that insures all deposits above Federal Deposit Insurance Corporation (FDIC) limits at its member banks, all of which are based in Massachusetts. DIF has been insuring deposits since 1934. All DIF member banks are also members of the FDIC. Each depositor is insured by the FDIC up to at least $250,000, all deposits above the FDIC insurance amount are covered by DIF for member banks.

 

Why is Needham Bank exiting DIF?

As result of our deposit growth in recent years, we have exceeded the maximum levels allowed by DIF.

 

Does this mean my deposits with Needham Bank are no longer insured?

Deposits held with Needham Bank in a Checking, Savings, Money Market Account or Certificate of Deposit (CD) will continue to be covered by the FDIC up to $250,000 per depositor, per ownership category.

 

When will the DIF coverage on my account(s) end?

  1. All funds in checking, savings and money market accounts at Needham Bank as of April 25, 2025 will remain covered by DIF insurance for one full year, until April 25, 2026 (the “grace period”). If funds are added to existing Checking, Savings or Money Market accounts during the grace period, they will not be insured by the DIF.
  2. Certificates of Deposit (CDs) opened on or before April 25, 2025 will continue to be insured by the DIF until maturity.
  3. Needham Bank will officially exit the DIF on April 25, 2025. Accounts opened after April 25, 2025 will not be covered by DIF insurance.

 

Are my deposits at Needham Bank safe?

Yes! Needham Bank is strong, safe and stable. Our recent initial public offering (IPO) has provided us with one of the highest levels of capital and liquidity in comparison to local peer banks.

 

How long will my Checking/Savings/Money Market account be covered?          

Deposit accounts (excluding CDs) will be covered up to the amount on deposit at the time of DIF exit for 1 year.

 

How long will my CD be covered?    

CDs will continue to have coverage until their first maturity date after the DIF exit. For example, a CD with a maturity date of May 1, 2027 would continue to be insured by the DIF over the allowable FDIC limit until it matures.

 

Will I lose coverage on all of my accounts?

Needham Bank will continue to be fully insured up to the standard FDIC limit of $250,000 per depositor per ownership category as they are now, which is sufficient for most customers. If the balance in your account exceeds that limit, you may be able to restructure your deposits in separate ownership categories to maximize your FDIC insurance coverage

 

I have deposits that exceed $250,000 with Needham Bank. Is there anything I can do to obtain insurance coverage for them?

There may be options available to restructure your deposits into different ownership categories (such as joint, single or retirement) to qualify for additional insurance. If you have any questions, please call 781-444-2100 (Monday through Friday from 7:00 a.m. to 7:00 p.m.) or visit a local branch to discuss how to maximize your FDIC insurance coverage. You can determine how much insurance coverage you will have by visiting the Electronic Deposit Insurance Estimator (EDIE) on the FDIC website .