NCUA Consumer Report: Share Insurance Overview


LOOKING FOR A SAFE PLACE TO
KEEP YOUR MONEY? TRY FEDERALLY INSURED CREDIT
UNIONS. FOR MORE THAN 100 YEARS,
CREDIT UNIONS HAVE PROMOTED THRIFT AND SAVINGS AMONG THEIR
MEMBERS AND CONSUMERS IN THE UNITED STATES. CREATED BY CONGRESS IN 1970,
THE NATIONAL CREDIT UNION SHARE INSURANCE FUND INSURES
THE ACCOUNTS OF MILLIONS OF ACCOUNT HOLDERS IN ALL FEDERAL
CREDIT UNIONS AND THE VAST MAJORITY OF STATE-CHARTERED
CREDIT UNIONS. THE NATIONAL CREDIT UNION
ADMINISTRATION (NCUA) IS THE INDEPENDENT FEDERAL AGENCY
THAT OPERATES AND MANAGES THE NATIONAL CREDIT UNION SHARE
INSURANCE FUND. TODAY, DEPOSITS AT FEDERALLY
INSURED CREDIT UNIONS ARE INSURED TO AT LEAST $250,000
PER INDIVIDUAL DEPOSITOR AND BACKED BY THE FULL FAITH AND
CREDIT OF THE UNITED STATES GOVERNMENT. YOU CAN FEEL SAFE PUTTING YOUR
MONEY IN A FEDERALLY INSURED CREDIT UNION. NOT ONE PENNY OF INSURED
SAVINGS HAS EVER BEEN LOST BY A MEMBER OF A FEDERALLY
INSURED CREDIT UNION. NCUA INSURES SAVINGS ACCOUNTS,
SHARE DRAFTS SIMILAR TO CHECKING ACCOUNTS, SHARE
CERTIFICATES, MONEY MARKET ACCOUNTS,
RETIREMENT ACCOUNTS (MOST COMMONLY STRUCTURED AS IRAS)
AND TRUST ACCOUNTS. HOWEVER, NCUA SHARE INSURANCE
DOES NOT EXTEND TO INVESTMENT PRODUCTS OFFERED BY COMPANIES
AFFILIATED WITH A CREDIT UNION SUCH AS MUTUAL FUNDS,
ANNUITIES AND OTHER NON-DEPOSIT INVESTMENTS. THE INSURANCE COVERAGE LIMIT
IS $250,000 PER DEPOSITOR, PER
OWNERSHIP ACCOUNT TYPE, AT EACH NCUA INSURED CREDIT
UNION. ALL DEPOSITS A MEMBER HAS IN
THE SAME OWNERSHIP ACCOUNT TYPE AT THE SAME CREDIT UNION
ARE ADDED TOGETHER AND COLLECTIVELY INSURED UP TO
$250,000 IF A PERSON HAS MORE THAN
$250,000 AT ANY SINGLE CREDIT UNION,
OPTIONS ARE AVAILABLE FOR ADDITIONAL SHARE INSURANCE
COVERAGE DEPENDING ON THE ACCOUNT OWNERSHIP TYPE. SO HOW DO YOU KNOW YOUR MONEY
IS IN A FEDERALLY INSURED CREDIT UNION? YOU NEED TO DO TWO THINGS:
FIRST, LOOK FOR THE OFFICIAL NCUA
SIGN AT YOUR CREDIT UNION. YOU’LL FIND THIS SIGN AT A
TELLER STATION OR YOUR CREDIT UNION’S WEBSITE. SECOND, UNDERSTAND THE
OWNERSHIP STRUCTURE OF YOUR ACCOUNTS. AND KEEP IN MIND, YOU CAN
ORGANIZE YOUR ACCOUNTS INTO FOUR OWNERSHIP TYPES: SINGLE,
JOINT, REVOCABLE TRUST (OR PAYABLE ON
DEATH), AND RETIREMENT ACCOUNTS
(INCLUDING TRADITIONAL, OR ROTH INDIVIDUAL RETIREMENT
ACCOUNTS OR KEOGH ACCOUNTS). EACH CATEGORY IS INSURED TO AT
LEAST $250,000. IT IS ALSO IMPORTANT TO NOTE,
IN DECEMBER OF 2014, THE INSURANCE PARITY ACT WAS
SIGNED INTO LAW ALLOWING ALL STAKEHOLDERS SHARE INSURANCE
COVERAGE FOR INTEREST ON LAWYERS TRUST ACCOUNTS OR
IOLTAS AND SIMILAR ESCROW ACCOUNTS. IF YOU HAVE QUESTIONS ABOUT
THIS UPDATE PLEASE CONTACT NCUA’S CONSUMER ASSISTANCE
CENTER. TO ENSURE YOU UNDERSTAND HOW
SHARE INSURANCE WORKS AND HELP YOU ORGANIZE YOUR ACCOUNTS,
NCUA PROVIDES MANY HELPFUL RESOURCES ONLINE AT NCUA’S
OFFICIAL CONSUMER PROTECTION WEBSITE MYCREDITUNION.GOV
SLASH SHAREINSURANCE. THEY INCLUDE NCUA’S SHARE
INSURANCE ESTIMATOR, ANSWERS TO FREQUENTLY ASKED
QUESTIONS, AND OTHER WRITTEN MATERIALS. YOU CAN USE NCUA’S SHARE
INSURANCE ESTIMATOR AT MYCREDITUNION.GOV BACKSLASH
ESTIMATOR TO HELP YOU CALCULATE THE AMOUNT OF SHARE
INSURANCE COVERAGE FOR YOUR ACCOUNTS, AND PROPERLY
STRUCTURE THEM TO MAXIMIZE YOUR SHARE INSURANCE COVERAGE. ALSO, WITHIN THE ESTIMATOR YOU
MAY BROWSE THE ANSWERS TO FREQUENTLY ASKED SHARE
INSURANCE QUESTIONS AND A GLOSSARY OF TERMS. ALSO, NCUA’S “HOW YOUR
ACCOUNTS ARE FEDERALLY INSURED’ BROCHURE PROVIDES A
GENERAL OVERVIEW OF NCUA’S SHARE INSURANCE COVERAGE. NCUA’S “YOUR INSURED FUNDS”
BOOKLET GIVES YOU A MORE DETAILED EXPLANATION OF THE
INSURANCE COVERAGES – PROVIDING EXAMPLES, AND
ANSWERS TO QUESTIONS. YOU CAN FIND BOTH PUBLICATIONS
AT MYCREDITUNION.GOV SLASH SHAREINSURANCE. NCUA ALSO PROVIDES ACCESS TO
AGENCY SHARE INSURANCE SPECIALISTS WHO CAN HELP
ANSWER SPECIFIC QUESTIONS. TO SPEAK TO A SPECIALIST
PLEASE CONTACT NCUA’S CONSUMER ASSISTANCE CENTER – TOLL FREE
AT 800-755-1030. IF YOU NEED HELP LEARNING
ABOUT AND LOCATING A FEDERALLY INSURED CREDIT UNION NEAR YOU,
USE NCUA’S CREDIT UNION LOCATOR AVAILABLE AT
MYCREDITUNION.GOV. YOU CAN ALSO DOWNLOAD THE
NCUA’S CREDIT UNION LOCATOR APP TO YOUR SMARTPHONE. YOU MAY ALSO VIEW THE VIDEO
APPEARING ON SCREEN NOW TO LEARN ABOUT HOW TO ORGANIZE
YOUR ACCOUNT OWNERSHIP TYPES TO MAXIMIZE YOUR SHARE
INSURANCE COVERAGE. CLICK ON THE VIDEO NOW. REMEMBER, FOR MORE INFORMATION
ABOUT HOW YOUR MONEY IS SAFE AT A FEDERALLY INSURED CREDIT
UNION, GO TO MYCREDITUNION.GOV. THANK YOU FOR WATCHING.

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