The shares in our credit union are insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of NCUA. Established by Congress in 1970 to insure member share accounts at federally insured credit unions, the NCUSIF is managed by NCUA. Share insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation (FDIC).

Not one penny of insured savings has ever been lost by a member of a federally insured credit union. The federal insurance fund has several programs to help insured credit unions which may be experiencing problems. Liquidations or failures are a last resort. If a federally insured credit union does fail, however, the NCUSIF will make any necessary payouts to the credit unions members. These payouts are usually done within 3 days from the time the credit union closes its doors.

Our members do not pay directly for share insurance protection. The credit union pays into the NCUSIF a deposit and an insurance assessment, based on the total amount of the credit unions insured shares and deposits. As an insured credit union, we are required to deposit and maintain one percent of our insured shares and deposits in the NCUSIF. The NCUSIF is backed by the full faith and credit of the United States government.

Most share accounts at our credit union are insured up to $100,000. Certain retirement accounts, such as IRAs, are insured up to $250,000. Generally, if a member has more than one account, those accounts are added together and insured in the aggregate. There are exceptions, though.

Members may obtain additional separate coverage on multiple accounts, if they have different ownership interests in these accounts.

Type of OwnershipMaximum InsuranceRestrictions Single$100,000The members single ownership accounts are added together and insured up to $100,000 Joint$100,000The members interest in all jointly owned accounts are added together and insured up to $100,000 Irrevocable Trust Accounts (including Coverdell Education Savings Accounts) $100,000All trust interests created by the same trustee for the same beneficiary are added together and insured up to $100,000. Either the trustee or the beneficiary must be a member.

Type of OwnershipMaximum InsuranceRestrictions IRA$250,000The members interest in all traditional and Roth IRAs are added together and insured up to $250,000. Payable on Death or Revocable Trust Accounts $100,000Each owner has $100,000 of coverage for each beneficiary. The beneficiary must be the owners spouse, child, grandchild, parent, brother or sister. The names of the beneficiaries must be listed on credit union records.

All funds owned by an individual member and invested by the member in one or more individual accounts are added together and insured up to $100,000. This is true whether the accounts are maintained in the name of the member or in then name of the members agent on behalf of the member.

Account OwnerAccount TypeAccount Balance Member AShare$100,000 Member AShare Draft$50,000 Member BShare Draft$100,000 Member A & BShare Certificate$100,000 MemberInsuranceExplanation Member A$150,000 Insured $50,000 Uninsured Both of Member As single accounts are added together and insured up to $100,000. Member As $50,000 interest in the joint account is fully insured. Member B$150,000 Insured Member Bs single account is insured up to $100,000. Member Bs $50,000 interest in the joint account is fully insured.

Account OwnerAccount TypeAccount Balance Member AShare$92,500 Member B as Agent for Member A Share$25,000 Member BShare$100,000 MemberInsuranceExplanation Member A$100,000 Insured $17,500 Uninsured Member As individual account and the agency account held on Member As behalf are added together and insured up to $100,000. Member B$100,000 InsuredMember Bs individual account is fully insured.

The interest of a co-owner in all accounts held under any form of joint ownership is insured up to $100,000. Co-owners have equal interest in joint accounts unless otherwise stated on credit union records. The insurance on joint accounts is separate from the insurance for individual accounts.

Account OwnerAccount TypeAccount Balance Member A & BShare$50,000 Member A & BShare Draft$30,000 Member A & CShare Certificate$100,000 Member A, B & CShare Certificate$120,000 MemberInsuranceExplanation Member A$100,000 insured $ 30,000 uninsured Member As interest in all joint accounts is $130,000 (½ of $50,000, ½ of $30,000, ½ of $100,000 and 1/3 of $120,000) Member B$80,000 insured Member Bs interest in all joint accounts is $80,000 Member C$90,000 insured Member Cs interest in all joint accounts is $90,000

The Irrevocable Trust must be valid under state law. The interest of each beneficiary in an account (or accounts) under an irrevocable trust arrangement is insured up to $100,000. Irrevocable trust accounts are insured separately from other accounts held by the settlor, trustee or beneficiary.

The credit unions records must indicate the names of the settlor and trustee and include a signature card executed by the trustee. The interest of the beneficiaries must be ascertainable from the records of either the credit union or the trustee.

Either the settlor or beneficiary must be a member of the credit union. If there are two or more settlors or beneficiaries then either all the settlors or all the beneficiaries must be members of the credit union. Coverdell Education Savings accounts are insured as an irrevocable trust account.

SettlorBeneficiariesAccount Balance Member AMember B Non Member C $200, (assume both beneficiaries have an equal interest) Member AMember B Member D $100, (assume both beneficiaries have an equal interest) BeneficiaryInsuranceExplanation Member B$100,000 Insured $50,000 Un-insured Member B is only insured up to $100,000 for all beneficial interests created by Member A Non Member C$100,000 InsuredThe non-member is fully insured because the settlor (Member A) is a member Member D$50,000 InsuredMember D is fully insured

Traditional and Roth IRA accounts are combined and insured up to $250,000. IRAs are insured separately from other non-IRA accounts.

Account OwnerAccount TypeAccount Balance Member AShare$100,000 Member A & BShare Draft$200,000 Member AIRA$250,000 Member BIRA$250,000 MemberInsuranceExplanation Member A$450,000 insuredMember A is fully insured: $100,000 in single accounts, $100,000 in joint accounts and $250,000 in IRA accounts. Member B$350,000 insuredMember B is fully insured: $100,000 in joint accounts and $250,000 in IRA accounts.

The account must evidence an intention that funds will pass directly on the death of the owner to a named beneficiary. To qualify for separate insurance under a Payable on Death account, the named beneficiary must be a spouse, child, grandchild, parent, brother or sister of the account owner.

The relationship between the owner and the beneficiary can be established through blood, adoption or re-marriage (for example, step-parents). Beneficiaries must be listed on credit union records. Payable on Death accounts can be established with a formal revocable trust, but dont need to be.

For Payable on Death accounts, share insurance coverage is $100,000 per owner for each qualifying beneficiary. Beneficiary interest in Payable on Death accounts is assumed to be equal unless otherwise stated on credit union records. Share insurance for Payable on Death accounts is separate from insurance on other individual, joint or retirement accounts of the member.

Account OwnerBeneficiariesAccount Balance Member ANone$75,000 Member AChild B Child C Nephew D $150,000 Account OwnerInsuranceExplanation Member A$ 200,000 Insured $25,000 Uninsured Member A only has $100,000 insurance coverage on her POD account since only two of the three beneficiaries qualify. The remaining $50,000 is combined with her other single accounts and insured up to $100,000.

Account OwnerBeneficiariesAccount Balance Member A & Member B (both parents of C, D & E) Child C Child D Child E $600,000 Account OwnerInsuranceExplanation Member A & Member B $600,000 insuranceMember A has $100,000 of insurance each for child C, D & E. Member B also has $100,000 of insurance each for child C, D & E.

Account OwnerAccount TypeBeneficiaryAccount Balance Member A & BShareNone$20,000 Member AShare DraftNone$5,000 Member BShare DraftNone$5,000 Member AIRANA$250,000 Member BIRANA$250,000 Member A & BShare CertificateNone$180,000 Member AShare CertificateNone$95,000 Member BShare CertificateNone$95,000 Member A & BShare CertificateChildren A, B & C $600,000 TOTAL DEPOSITS$1,500,000

All of Member A and Member Bs accounts are fully insured, having taken advantage of the share insurance granted to the different types of account ownership.

A married couple have the following accounts at our credit union. They want your advice on how they can obtain full share insurance coverage without taking money to another institution. OwnerAccount TypeAccount Balance Member A & BShare$175,000 Member A & BShare Draft$50,000 Member A & BShare Certificate$300,000