Depositors Insurance Fund
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The Depositors Insurance Fund was created by the state government of Massachusetts in response to the large number of Massachusetts bank failures during the Great Depression. The Federal Deposit Insurance Corporation was inspired by this fund. After the FDIC was created, the state fund was modified to cover all amounts not covered by the FDIC. Typically the FDIC covers the first $100,000 of an account; the Massachusetts fund will cover any amount above that. As a result, account holders in Massachusetts banks generally have all of their deposits insured by the combination of the state fund and the FDIC.
