The National Credit Union Share
Insurance Fund (NCUSIF)
is a U.S.
treasury revolving fund managed by the
National Credit Union Administration (NCUA).
Of the nearly 10,000 credit unions in the US,
more than 97% are covered by the NCUSIF, which
is backed by the full faith and credit of
the United States government.
NCUSIF coverage is provided in all 50 states,
Guam, Puerto Rico and the Virgin Islands. All
federally chartered credit unions regardless of
location must be insured by the NCUSIF. Only
eight states and Puerto Rico allow state
chartered credit unions to carry private primary
share insurance.
The NCUSIF, with more than $6 billion in
equity, is financially strong, and is
additionally backed by the full faith
and credit of the US government.
Credit unions pay for Federal insurance
through an assessment based on shares and
deposits. Members do not pay a fee for
this insurance coverage.
Federal credit unions are subject to NCUA
supervision. State-chartered credit unions with
NCUSIF coverage are subject to state
supervision, but are also monitored by NCUA.
This regular examination and supervision process
helps ensure the safety and soundness of
federally insured credit unions.
The basic insured amount for a credit union
member is $100,000. Once properly established,
share accounts in different rights and
capacities can achieve additional insurance
coverage. As one example, a family of four could
structure accounts to attain up to $1.4 million
in NCUSIF coverage (See section: "Coverage Over
$100,000).
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