Federal Deposit Insurance (NCUSIF)
The Emergency Economic Stabilization Act of 2008, signed into law on October 3, 2008, increased the insurance coverage on all accounts up to $250,000. The shares in your credit union are insured by the National Credit Union Share Insurance Fund (NCUSIF), which 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).
Here are some important facts to remember about your share insurance: Not one penny of insured savings has ever been lost by a member of a federally insured credit union.
Most properly established share accounts in federally insured credit unions are insured up to the Standard Maximum Share Insurance Amount (SMSIA), which is $250,000 as of October 2008, but may be increased in the future. Recent legislation has increased the insurance coverage on certain retirement accounts, such as IRAs and Roth IRAs, 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. There are exceptions, though. You may obtain additional separate coverage on multiple accounts, but only if you have different ownership interests or rights in different types of accounts and you properly complete account forms and applications. 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.
Additional coverage is available for joint account holders.The NCUSIF provides joint account holders with $250,000 coverage for their aggregate interests at each federally insured credit union. For example, a two person joint account has $500,000 in coverage.This coverage is separate from and in addition to the coverage available for other accounts such as individual accounts and retirement accounts. Additional coverage is also available on trusts and payable on death accounts. These accounts may qualify for insurance coverage for up to$250,000 per beneficiary. For more information, you can go online to the NCUA Share Insurance Estimator an education resource about share insurance that gives a detailed explanation of insurance coverage. Or contact the credit union for a Your Insured Funds brochure that gives a more detailed explanation of your insurance coverage.