|What is NCUSIF Insurance?|
The shares in your credit union are insured by the National Credit Union Administration (NCUA) through the National Credit Union Share Insurance Fund (NCUSIF). The NCUSIF is backed by the full faith and credit of the United States government. Your share insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation (FDIC).
The Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law on July 21, 2010, included provisions making permanent the current $250,000 maximum federal deposit insurance level, which had been temporary until December 31, 2013. Your share accounts are insured up to the Standard Maximum Share Insurance Amount (SMSIA), which is $250,000 as of October 2008. IRAs are insured separately, up to $250,000. Generally, if a credit union member has more than one account in the same credit union, those accounts are added together and insured in the aggregate. For example, if you have a regular share account and an Individual Retirement
Account (IRA) at the same credit union, the regular share account is insured up to $250,000 and the IRA is separately insured up to $250,000. However, if you have a regular share account, a share certificate, and a share draft account, all in your own name, you will not have additional coverage. Those accounts will be added together and insured up to $250,000 as your individual account. There are exceptions, though. You may obtain additional separate coverage on multiple accounts, but only if you have different ownership interests or rights. For example, joint accounts or payable on death accounts with qualifying beneficiaries are both insured separately from the individual accounts of the owners.
Additional coverage is available on revocable trust or payable on death accounts. The funds in such accounts are insured for the owner up to a total of the $250,000 SMISA for each benefi ciary separately from any other individual accounts of the owner. For joint accounts, a co-owner’s interest in all joint accounts in the same credit union will be added together and insured up to the $250,000.
Coverdell Education Saving Accounts, formerly education IRAs, are insured as irrevocable trust accounts and will be added to a member’s other irrevocable trust accounts and insured up to $250,000. Roth IRAs will be added together with traditional IRAs and insured up to $250,000. For more information regarding coverage please browse the NCUA web site or contact us.
Not one penny of insured savings has ever been lost by a member of a federally insured credit union. The federal insurance fund has several programs to help insured credit unions which may be experiencing problems.
Statement of Financial Condition
Notice of change in NCUA Share Insurance Coverage. Click here for details.