Your Insured Funds

Maximum Share Insurance Protection
Your money is safe because it’s insured by the National Credit Union Share Fund (NCUSIF) at no cost to you, our member. The symbol below is your guarantee. This share insurance protection is provided by the NCUA, an independent agency of the United States Government.

 Different ownership of accounts as described below can dramatically increase your share insurance coverage.

Effective April 22, 1999, the NCUA has introduced two revisions to revocable trust and joint accounts which may increase your maximum share insurance coverage.

 1) Change to Revocable Trust Accounts – Parents and siblings have been added to the list of qualified beneficiaries of a revocable trust account which previously included spouses, children and grandchildren, These relationships include kinship through blood, adoption, or as a result of remarriage.

 The term “revocable trust account” includes testamentary accounts, “Totten” trust accounts, “payable-on-death” accounts, or any similar account which evidences the intention to distribute the funds to one or more named beneficiaries upon the death of the owner. These accounts are insured up to $250,000 until at least December 31, 2009, per qualified beneficiary, regardless of their membership status, for all revocable trust accounts owned by the same person at the same federally insured credit union.

2) Change to Joint Accounts – Under the revised rule, the interests of a co-owner in all qualifying joint accounts at the same federally-insured credit union are added together and insured up to a maximum of $250,000. An account is a qualifying joint account if the co-owners have equal withdrawal rights and each of the co-owners has personally signed a membership or account signature card. (Some exceptions may apply.)

Here’s an example of a family utilizing these revisions and combining accounts to assure maximum share protection of their investments. It is assumed that the identified owners are qualified owners. 
Individual Accounts: Account Balance
Grandparent  $250,000
Parent  $250,000
Child 1  $250,000
Child 2  $250,000
Joint Accounts:  
Parent and Grandparent  $250,000
Parent and Child 1  $250,000
 Grandparent and Child 2  $250,000
 Child 1 and Child 2  $250,000
 Revocable Trust Accounts:  
 Parent as Trustee for Child 1 and Child 2  $500,000
 Grandparent as Trustee for Child 1 and Child 2  $500,000
 Grandparent as Trustee for Parent  $250,000
 Parent as Trustee for Grandparent  $250,000
 Child 1 as Trustee for Child 2  $250,000
 Child 2 as Trustee for Child 1  $250,000

Further details of these changes can be found in Vol. 64, No. 77 of the Federal Register.