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BANK FOR SAVINGS CLOSED; 'YOUR MONEY IS SAFE' CENTRAL FUND TELLS DEPOSITORS

BANK FOR SAVINGS CLOSED; 'YOUR MONEY IS SAFE' CENTRAL FUND
 TELLS DEPOSITORS
 BOSTON, March 20 /PRNewswire/ -- In the wake of the Commonwealth's seizure this afternoon of the Bank for Savings, the fund that insures bank deposits in excess of $100,000 moved quickly to assure customers that their money is protected.
 The Mutual Savings Central Fund insures all deposits in excess of the $100,000 Federal Deposit Insurance Corporation limit in the Bank for Savings. The insured amount includes accrued interest calculated through the close of business today.
 Central Fund President Leonard Lapidus said, "The Central Fund wants to assure every Bank for Savings customer that any deposits over $100,000 they have in the bank are fully protected. Deposits will be available without interruption when former Bank for Savings offices reopen for business on Saturday, March 21 as branches of the Medford Savings Bank. "And because the Medford Savings Bank is also a member of the FDIC and the Central Fund, all deposits from the former Bank for Savings will continue to be insured in full," he said.
 "In the insurance fund's 58-year history, no depositor of a member bank has ever lost a cent when their bank has failed. Bank for Savings customers will be no different," he added.
 Bank for Savings has eight offices in the following communities: Malden, Saugus, Hopkinton and Holliston.
 It is estimated that there are 366 accounts in the Bank for Savings with deposits over $100,000 totaling $15.1 million. Lapidus said that the Central Fund has mnade a payment of $477,000 to the FDIC to facilitate the assumption of these deposits by the Medford Savings Savings Bank. The payment represents the money that depositors would have lost if the excess deposits had not been insured by the Central Fund. The Central Fund's actual liability will be determined within 60 days, and the Fund's payment to the FDIC will be adjusted accordingly.
 The Mutual Savings Central Fund manages the Deposit Insurance Fund (DIFM). The Central Fund is a private, industry-sponsored, mutual deposit insurance company that was created by the state legislature in 1932. All state-chartered savings banks must by law, be members of the Central Fund.
 -0- 3/20/92
 /CONTACT: Jennifer Watson of McDermott/O'Neill & Associates, 617-261-2200, for The Bank for Savings/ CO: The Bank for Savings ST: Massachusetts IN: FIN SU: BCY


EG -- NE006 -- 0198 03/20/92 15:39 EST
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Publication:PR Newswire
Date:Mar 20, 1992
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