Federal Share Insurance


Facts about how your money is insured through Federal Share Insurance.

Your warranty of Safety
Credit unions insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of the National Credit Union Administration (NCUA) are protected by federal deposit insurance. The NCUA is an independent agency of the United States government. Insured Credit Unions must display this symbol:

Your savings federally insured up to $250,000
NCUA
National Credit Union Administration, a U.S. Government Agency

The following are questions and answers that cover many of the areas of concern to credit union members.

Who pays for federal share insurance?
The cost for this important credit union benefit is borne by credit unions. As a member, you do not pay directly for your share insurance protection.

The safety net of federal insurance is one of the keystones of your credit union's many member services. Your shares and savings are not only insured by this federal fund; the fund is also fully backed by the U.S. government. Not one penny of insured savings has ever been lost by a member of a federally insured credit union.


Are shares in different credit unions insured separately?
Yes. If a member has accounts in several different insured credit unions, the maximum of $250,000 is applicable to share accounts in each insured credit union. In the case of a credit union having one or more branches, the main office and all branch offices are considered as one credit union.

How are IRAs, Keogh, and Deferred Compensation accounts covered?
With federal share insurance through NCUA, these types of accounts are insured separately up to $250,000 from other accounts that the member maintains at the same credit union.

How much coverage does each credit union member have?
Share accounts in federally insured credit unions are insured up to $250,000 just as with FDIC coverage at banks. Generally, if a credit union member has more than one individual account in the same insured credit union, those accounts are added together and are insured up to $250,000. Shares maintained in different legal ownership capacities may each be separately insured.

There are numerous combinations of accounts, which can increase the total coverage. A typical example follows:

HOW MULTIPLE OWNERSHIP CAN INCREASE INSURANCE COVERAGE
 ACCOUNT COVERAGE 
Individual
Husband ...........................................................................
Wife .................................................................................

$250,000
$250,000
Joint Tenancy
Husband and Wife Joint .....................................................

$500,000
Revocable Trust
Husband (Trustee Wife) .....................................................
Wife (Trustee Husband) .....................................................

$250,000
$250,000
Total Coverage ...................................................................... $1,500,000

There are many other combinations, which can increase or decrease your level of coverage. Dividing funds owned in the same categories will not, however, increase the coverage. Only the legal ownership category can change coverage. To determine the extent of your share insurance coverage, contact your federally insured credit union.




NCUA