People's Bank partners with Intra Cash to ensure excess deposit coverage

In a recent meeting of the Holyoke Redevelopment Authority (HRA), board members discussed significant changes regarding the management of deposits at People's Bank. The bank, having outgrown the state deposit insurance fund due to its size and acquisitions, is transitioning to a new insurance model that aims to protect deposits exceeding the standard $250,000 limit.

People's Bank has partnered with Intracash Financial Services to provide additional coverage for customers with larger deposits, ensuring that funds above the insured limit are safeguarded at no cost to the customers for the foreseeable future. This change is particularly relevant for the HRA, which holds substantial deposits that could exceed the insured amount.

Board members expressed the need for clarity and comfort regarding this new arrangement. They noted that while the bank's financial strength is reassuring, there are complexities involved in the new insurance structure. The HRA will need to sign an agreement to participate in this program, which involves some paperwork and understanding of the terms.

The discussion highlighted the importance of ensuring that the HRA's funds remain secure, especially as the bank's growth has made traditional insurance options less viable. Members emphasized the need to monitor where their deposits are placed, as the new system involves spreading excess funds across multiple banks to maintain insurance coverage.

Overall, the board's deliberations reflect a proactive approach to managing public funds and ensuring the financial security of the HRA's assets. As they move forward with this new insurance strategy, the HRA aims to balance risk management with the need for accessible and secure banking solutions for the community.