YOUR FEDERALLY INSURED FUNDS

WHAT IS NCUA?

The National Credit Union Administration, commonly referred to

as NCUA, is an independent agency of the United States government

that regulates, charters and supervises federal credit

unions. NCUA also operates and manages the National Credit

Union Share Insurance Fund (NCUSIF). Backed by the full faith and

credit of the U.S. government, the NCUSIF insures the accounts

of millions of account holders in all federal credit unions and the

vast majority of state-chartered credit unions.

Members have full NCUSIF coverage at each federally insured

credit union where they are qualified members. While the

NCUSIF coverage protects members at all federally insured

credit unions from losses on a broad spectrum of savings and

share draft products, it does not cover losses on money invested

in mutual funds, stocks, bonds, life insurance policies, and

annuities offered by affiliated entities.

DOES THE NCUSIF PROVIDE ADDITIONAL COVERAGE?

All members of federally insured credit unions have options for

coverage that is separate from and in addition to the coverage

available to their single ownership accounts.

RETIREMENT ACCOUNTS

Members with traditional and Roth Individual Retirement

Accounts (IRAs) and KEOGH retirement accounts at federally

insured credit unions have additional coverage available at

each federally insured credit union where they qualify and

become members. The NCUSIF insures traditional and Roth

IRAs for $250,000 in the aggregate at each credit union.

Additionally, NCUA insures KEOGH accounts separately in

the aggregate to $250,000 at each credit union.

Retirement account insurance protection is separate and

apart from insurance coverage on other credit union accounts.

For example, if you have a regular share account,

an IRA, and a KEOGH at the same credit union, the NCUSIF

insures the regular share account for up to $250,000, the

IRA for up to an additional $250,000, and the KEOGH for

up to an additional $250,000.

JOINT ACCOUNTS

Joint accounts are owned by two or more people who have

equal rights to withdraw money from the account and no

beneficiaries are named. These accounts can include regular

shares, share drafts (similar to checking), money market

accounts, and share certificates. The NCUSIF provides

each joint account holder with $250,000 coverage for their

aggregate interests at each federally insured credit union.

WHY IS NCUSIF SHARE INSURANCE COVERAGE IMPORTANT?

Share insurance coverage offered through the NCUSIF protects

members against losses if a federally insured credit union should

fail. You can confidently join and conduct business with federally

insured credit unions because no member has ever lost a penny

from accounts insured by the NCUSIF.

Historically, insured funds are available to members within just a

few days after the closing of an insured credit union. Failures of

federally insured credit unions are rare because only those with

sound operational standards qualify to receive NCUSIF coverage.

NCUA also regularly reviews the operations of all federal credit

unions and works closely with state regulatory authorities to

evaluate federally insured, state-chartered credit unions.

WHAT BASIC COVERAGE IS PROVIDED BY THE NCUSIF?

The NCUSIF provides all members of federally insured credit

unions with $250,000 in coverage for their single ownership accounts.

These accounts include regular shares, share drafts

(similar to checking), money market accounts, and share certificates.

Individuals with account balances totaling $250,000 or less

at the same insured credit union are fully insured.

If a person has more than $250,000 at any single credit union,

several options are available for additional share insurance coverage

because, as discussed in greater detail (right), the NCUSIF

provides separate insurance for other accounts.

TRUST ACCOUNTS

The NCUSIF provides separate coverage for both revocable

and irrevocable trusts. Credit unions can establish a common

informal revocable trust payable-on-death account

without additional documentation; however, some trusts

require additional, valid documentation to qualify for

coverage. While this brochure briefly discusses how the

NCUSIF insures trusts, members should consult appropriate

professionals to properly establish and document

trust arrangements.

REVOCABLE TRUSTS

Revocable trust accounts may qualify for insurance coverage

of up to $250,000 per beneficiary named by the owner

(if a member of the credit union) that is separate from

the individual coverage available to the trust owner (also

referred to as grantor or settlor). For example, if a person

with a revocable trust for $750,000 names a spouse and

two children as beneficiaries, the entire $750,000 would

have separate NCUSIF coverage ($250,000 per beneficiary).

This coverage is separate from the coverage provided to

the other types of accounts held by the trust’s owner at

the same federally insured credit union.

IRREVOCABLE TRUSTS have separate coverage based on the

beneficial interest. The interest of each beneficiary in an

account (or accounts) established as an irrevocable trust

has separate NCUSIF coverage of up to $250,000. In cases

where a beneficiary has an interest in more than one trust

arrangement created by the same owner, the interests

of the beneficiary in all accounts established under such

trusts are added together for insurance purposes and

insured for a total of up to $250,000.

HOW DO I KNOW MY CREDIT UNION IS FEDERALLY INSURED?

Federally insured credit unions are required to indicate their

insured status in their advertising and to display the official

NCUSIF insurance sign in their offices and branches. For a

complete directory of federally insured credit unions, visit ncua.gov

NCUA SHARE INSURANCE ESTIMATOR

The NCUA Electronic Share Insurance Estimator is available

to help members better understand the protection offered

by the NCUSIF. This interactive site allows users to input data

to compute the amount of NCUSIF coverage available under

different account scenarios. This resource is available at mycreditunion.gov/estimator

COVERAGE LIMITS

The standard share insurance amount is $250,000 per share owner, per insured credit union,

for each account ownership category. The $250,000 standard share insurance account became

permanent through the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.