The National Credit Union Administration (NCUA)
is the federal agency that charters and supervises federal
credit unions and insures savings in federal and most
state-chartered credit unions across the country through the
National Credit Union Share Insurance Fund (NCUSIF), a
federal fund backed by the full faith and credit of the
United States government.
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WHAT ARE SAVINGS?
For share insurance purposes,
savings are funds deposited by the credit union member into
his or her own credit union account. In more technical
terms, they are funds used by the member to purchase shares
in the credit union either as share accounts, individual
retirement accounts, or share draft accounts of a type
approved by the NCUA Board. |
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ARE ALL
CREDIT UNIONS INSURED BY THE NCUA?
No. The NCUA Board insures all
federal credit unions and all state credit unions that apply
and meet the standards set out by the NCUA Board. Insured
credit unions are required to display the official symbol of
the NCUA in each teller's window or station. |
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HOW DOES
NCUA SHARE INSURANCE PROTECT?
Each credit union approved for insurance must meet high
standards. Adherence to these standards is determined
regularly through credit union examinations by federal and
state examiners. If despite these precautions, an insured
credit union falls into financial difficulty and must be
closed for the purpose of liquidation because of insolvency,
savings will be protected up to a maximum of $250,000. |
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WHAT IS
THE BASIC PROTECTION AFFORDED BY INSURANCE?
The basic insurance amount for a member is $250,000.
Accounts maintained in different rights or capacities are
each separately insured to $250,000. Thus, a member may hold
or have interest in more than one type of an insured account
in the same insured credit union for an insured total in
excess of $250,000. |
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CAN A
FEDERAL CREDIT UNION TERMINATE ITS NCUA INSURANCE?
No. A federal credit union cannot be chartered or retain its
charter unless it is insured by the NCUA board. |
To find out more visit the
NCUA website
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