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BLAWg In Bloom

The Indiana Law Library Blog

Indiana Public Deposit Insurance Fund

             The State of Indiana has deposited public funds into bank accounts in every Indiana county.  The state also has a plan to protect all that money in the event of a bank collapse.

             The Indiana Board of Depositories oversees the accounts held in approved banks around the state in which funds for the state government and its agencies are deposited.  The Board also oversees the Public Deposit Insurance Fund (PDIF), an insurance program which is meant to cover deposited amounts over the Federal Deposit Insurance Corporation (FDIC) limits.  The PDIF was created by law in 1937 in response to numerous bank failures in the 1930’s, and is funded by fees from every depository bank with a governmental account.  Currently, no fees are charged as the Board has determined that the existing reserves are sufficient to cover potential losses.

            The Board of Depositories website links to lists of approved depository banks and financial statements showing the average daily balance of all accounts held in depository banks.

             The FDIC was created in 1933, as a result of bank failures, and insures consumers’ deposits in banks nationwide.  Information about the temporary increase in FDIC account coverage can be found on the FDIC’s press release page.  The FDIC website also has tools to help consumers determine whether their accounts are covered by the FDIC and to find FDIC-insured banks.

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