By Paula Vaughn, EVP
Southwest Heritage Credit Union
The National Credit Union Share Insurance Fund (NCUSIF), operated and managed by the National Credit Union Administration (NCUA) and backed by the full faith and credit of the U.S. Government, provides all members of federal insured credit unions with up to $250,000 in coverage for their single ownership accounts. The NCUA is an independent agency of the United States government that regulates, charters and supervises federal credit unions. The NCUSIF insures the accounts of millions of account holders in all federal credit unions and the vast majority of state-chartered credit unions.
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.
Types of Accounts Covered by NCUA Share Insurance Fund
The NCUA Share Insurance Fund protects many types of share deposits, including:
- Share draft accounts (checking)
- Share accounts (savings)
- Certificates of Deposit
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.
- Individual Retirement Accounts
- Joint accounts
- Trust Accounts – Revocable Trusts and Irrevocable Trusts
Here’s a breakdown of coverage limits for the most common account types:
- Single Ownership Accounts (no beneficiaries): $250,000 per member-owner
- Joint Ownership Accounts(no beneficiaries) : $250,000 per owner (primary owner must be a credit union member)
- IRAs and Certain Retirement Accounts: $250,000 per member-owner
- Revocable Trust Accounts: Up to $250,000 per eligible beneficiary, subject to rules and limitations
- Irrevocable Trust Accounts: Up to $250,000 per eligible beneficiary, provided all owners or beneficiaries are credit union members.
To estimate your coverage for all types of ownership and beneficiary scenarios, check out the NCUA Share Insurance Estimator and explore their FAQs for additional guidance.