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Accounts - Insured Savings FAQs

Q. Are my funds insured?
A. Yes. Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government by the National Credit Union Administration (NCUA), a federal agency which administers the National Credit Union Share Insurance Fund (NCUSIF). Not one penny of insured savings has ever been lost by a member of a federally insured credit union.

Q. What is the basic NCUSIF share insurance coverage?
A. The basic insured amount for a credit union member under current law is at least $250,000. IRA accounts (Traditional, Roth and SEP) are insured to $250,000. Savings accounts maintained in different rights or capacities, or forms of ownership, may each be separately insured up to $250,000. Thus, a member may hold or have an interest in more than one separately insured savings account in the same insured credit union.

NCUSIF share insurance is not increased by dividing funds owned by the same person or persons into one or more different types of savings accounts. For example, a regular savings account, a checking account and a certificate account owned by the same member are added together and insured up to $250,000. Insurance can be increased by opening a different type of account - one that is held in a different right and capacity. For example, insurance on a single ownership account is separate from insurance on a joint account.

See our Insurance page for detailed information.

Q. Why aren't my accounts FDIC insured?
A. The FDIC insures funds held in banks and thrift institutions.  The NCUA insures funds held in credit unions. Both organizations are agencies of the United States Government.  The NCUA is funded by premiums that credit unions pay for deposit insurance coverage and from earnings on investments in U.S. Treasury securities.

Q. What types of accounts are insured?
A. All types of member savings accounts and deposits received by the credit union in its usual course of business, including regular savings, certificate accounts, IRAs, Coverdell ESAs and checking accounts are insured.

Q. What is the insurance coverage on a joint revocable trust account?
A. A joint revocable trust account is a revocable trust account that is established by more than one owner and held for the benefit of others, some or all of whom are natural persons or a charitable organization or other non-profit entity under the Internal Revenue Code of 1986. The respective interests of each co-owner held for the benefit of each beneficiary will be separately insured up to the $250,000 SMSIA. The interest of each co-owner will be deemed equal unless otherwise stated in the share account records of the federally-insured credit union. Interests held for beneficiaries other than those described above will be added to the individual accounts of the co-owners. Where a husband and a wife establish a revocable trust account naming themselves as the sole beneficiaries, the account will not be insured as a joint revocable trust account, but will instead be insured as an ordinary joint account.

Q.  If a member has accounts in several different insured credit unions, will the accounts be added together for the purpose of insurance coverage?
A. No. The maximum insurance of $250,000 is applicable to savings accounts in each insured credit union. A member who has savings accounts in two or more different insured credit unions would have up to $250,000 insurance in each 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.


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