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What is
an NCUSIF-insured
financial
institution? |
Congress
established the
National
Credit Union
Share Insurance
Fund (NCUSIF)
in 1970 to
insure member
share accounts
at all federally
chartered credit
unions and most
state chartered
credit unions.
NCUSIF insurance
is similar to
the deposit
insurance
protection
offered by the
Federal Deposit
Insurance
Corporation
(FDIC). The
NCUSIF is
managed by
The
National Credit
Union
Administration (NCUA)
under the
direction of the
three-person
NCUA Board
appointed by the
President of the
United States.
NCUSIF insures
member shares in
all federal
credit unions
and those
federally
insured
state-chartered
credit unions
that apply for
and meet the
insurance
standards.
Insured credit
unions are
required to
indicate their
insured status
in their
advertising and
to display the
official NCUSIF
insurance sign
at their
offices. Some
state credit
unions are
insured by
private
insurance or
guaranty
corporations
which are
separate and
apart from
NCUSIF.
Federally
insured credit
unions must
display this
sign:
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How does
NCUSIF share
insurance
protect credit
union members
against loss?
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Each credit
union approved
for NCUSIF share
insurance must
meet high
standards of
safety and
soundness in its
operation.
Adherence to
these standards
is determined
regularly
through credit
union
examinations by
federal and
state (if
applicable)
examiners. If an
insured credit
union gets into
financial
difficulties and
must be closed,
the NCUSIF acts
immediately to
protect each
member's share
account.
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How much
coverage does
each credit
union member
have? |
The basic
insured amount
for a credit
union member
under current
law is $100,000.
Share accounts
maintained in
different rights
or capacities,
or forms of
ownership, may
each be
separately
insured up to
$100,000. Thus,
a member may
hold or have an
interest in more
than one
separately
insured share
account in the
same insured
credit union
(See section:
"Coverage Over
$100,000").
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What
types of
accounts are
insured? |
All types of
member share
accounts and
deposits
received by the
credit union in
its usual course
of business,
including
regular shares,
share
certificates,
and share draft
accounts are
insured.
Investment
products offered
by a credit
union to its
members, such as
mutual funds,
annuities, and
other
non-deposit
investments are
not insured by
the NCUSIF. (See
section:"Insured
or Not Insured,"
for additional
details).
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Are
retirement
accounts
insured? |
Retirement
accounts held in
federally
insured credit
unions are
insured if the
accounts
themselves are
covered by
Federal
insurance. (See
section: "Insured
or Not Insured,"
for additional
details).
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Is
NCUSIF share
insurance
coverage
increased by
placing funds in
two or more of
the same kind of
share accounts
in the same
credit union? |
No. NCUSIF share
insurance is not
increased merely
by dividing
funds owned by
the same person
or persons into
one or more of
the different
kinds of share
accounts
available. For
example, a
regular share
account, a share
draft account
and a share
certificate
account owned by
the same member
are added
together and
insured up to
$100,000.
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 section: "Coverage
Over $100,000").
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If a
member has
accounts in
several
different
insured credit
unions, will the
accounts be
added together
for the purpose
of insurance
coverage? |
No. The maximum
insurance of
$100,000 is
applicable to
share accounts
in each insured
credit union. A
member who has
share accounts
in two or more
different
insured credit
unions would
have up to
$100,000
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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How do I
get share
insurance? |
All federal
credit unions
must be insured
by NCUSIF, and
no credit union
may terminate
its federal
insurance
without first
notifying its
members. As a
member of a
federally
insured credit
union, you do
not pay a fee
for your share
insurance
protection. Your
credit union
pays into the
NCUSIF a
deposit, and an
insurance
assessment,
based on the
total amount of
insured shares
and deposits in
the credit
union.
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