- NCUA insures accounts in credit unions through the National Credit Union Share Insurance Fund (Share Insurance Fund).
- Congress established the Share Insurance Fund in 1970 to insure member's shares.
- The Share Insurance Fund is backed by the full faith and credit of the United States Government.
- The Share Insurance Fund provides essentially the same coverage as the Federal Deposit Insurance Corporation's (FDIC) account insurance.
- Not one penny of insured savings has ever been lost by a member of a federally insured credit union!
- The NCUA insures share accounts in federally insured credit unions for $250,000 per qualifying account.
- You can tell your credit union is federally insured by checking to see if it displays the NCUA official insurance sign. You can also check the insurance status of your credit union by visiting www.ncua.gov/indexdata.
- If a federally insured credit union fails and is closed, NCUA will pay members the insured amount of their credit union accounts. Payments are usually made within 3 days or less after a credit union closes its doors. Instead of sending payments directly to members, NCUA sometimes just transfers member accounts to another, open federally insured credit union and gives members a notice of the transfer.
- You can increase your coverage by setting up different types of accounts because the $250,000 coverage is per qualifying account.
Single Ownership Accounts
- Funds you own individually in just your name are single ownership accounts. These include savings accounts, checking accounts, and share certificates.
- The maximum insurance coverage for single accounts account is $250,000.
- NCUA adds together all single accounts and insures them up to $250,000.
- Joint accounts are accounts owned by two or more members.
- Joint account insurance is in addition to insurance you can have for individual accounts.
- NCUA insures each owner of the account up to $250,000.
- NCUA adds together each owner's share of any joint accounts he or she has a joint interest in and insures that total up to $250,000.
Revocable Trusts - POD Accounts
- The most common type of revocable trust account is the payable on death account (POD)
- A POD account shows the intent of the account's owner that upon his or her death the funds will pass to one or more named beneficiaries. Typically, this intent is shown in the titling of the account by using words such as: in trust for or payable on death to.
- NCUA insures these accounts up to $250,000 per beneficiary. Naming the same beneficiary on more than one POD account does not increase insurance coverage.
- A beneficiary can be any natural person as well as charitable and nonprofit organizations recognized as tax exempt by the IRS. If you list a beneficiary that does not qualify, the funds in the account will be insured as the owner's individual account and added with all of his other individual accounts and insured up to $250,000.
- Insurance coverage on POD accounts that name more than five beneficiaries and have a balance greater than $1,250,000 are treated differently for insurance purposes.
- The amount of insurance on these types of POD accounts depends on the amount of funds attributed to each beneficiary.
- If you need assistance with this type of POD account please contact NCUA's insurance call center at 1-800-755-1030.
- IRA, Roth IRA and Keogh accounts are insured to $250,000.
- These accounts are insured separately from other accounts a member maintains in the same credit union
- Keogh accounts are separately insured from IRA accounts.
- Traditional IRA accounts and Roth IRA accounts are added together and insured up to $250,000.