Fact: Deposit insurance is ONLY activated upon closure of a member institution.
Frequently Asked Questions
- If a depositor has more than $200,000 (the current insured limit) in a closed institution and is paid $200,000 by the DIC, what happens to the amount in excess of $200,000?
- Is the insurance protection increased by placing funds in two or more types of deposit accounts in the same institution?
- When must a depositor file a claim?
- Does the borrower’s obligations to the institution continue after the institution is closed?
Did You Know?
- Misconception: Depositors of a failed member institution would receive payment immediately upon closure of the failed member. - Fact: The legislation governing the operations of the Deposit Insurance system provides for payout to commence within 3 months of the closure of a member institution.
