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| | Share Insurance Protection Extended to 2013 | | | |
The Helping Families Save Their Homes Act of 2009, signed into law May 20, 2009, includes a provision extending $250,000 share insurance coverage provided by the National Credit Union Share Insurance Fund through December 31, 2013. Previously, this level of coverage was set to expire December 31, 2009. The new law also requires NCUA to use the higher $250,000 standard maximum share insurance amount when making decisions about premiums and administering insurance deposit adjustments.
NCUA will shortly update its guidance about share insurance coverage to address the provisions of the new law. Information about NCUA insurance coverage is available online via the Share Insurance Tool Kit at http://www.ncua.gov/Resources/ShareInsuranceToolkit.aspx.
The National Credit Union Administration is the independent federal agency that regulates charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of nearly 90 million account holders in all federal credit unions and the majority of state-chartered credit unions.
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| | With all the recent turmoil in the economy, we want to assure our members that your accounts at Kern Schools Federal Credit Union are safe and secure. In addition to banking with a conservative financial institution, your funds are federally insured by the National Credit Union Administration (NCUA). As a requirement of the recently passed Emergency Economic Stabilization Act of 2008, the National Credit Union Administration increased share insurance protection to $250,000 (from $100,000 on shares) for all types of accounts at federally insured credit unions until Dec. 31, 2013.
Remember that NCUA Insurance applies to your Credit Union accounts, not investments. The NCUA protects share savings accounts, share draft (checking) accounts, share certificates and other types of accounts including IRAs. It is possible to increase your family’s insurance coverage well beyond the $250,000 just by setting up your accounts wisely. Here are some examples of how ownership status on accounts can increase your covered dollar amount:
How a Family of Two May Have Insured Accounts Totaling $1,500,000: | |
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| | INDIVIDUAL ACCOUNTS | | | |
| Husband | $250,000 | | Wife | $250,000 | | |
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| | JOINT ACCOUNTS | | | | | |
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| | REVOCABLE TRUSTS | | | |
| Husband as Trustee for Wife | $250,000 | | Wife as Trustee for Husband | $250,000 | | |
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How a Family of Three May Have Insured Accounts Totaling $2,500,000: | |
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| | INDIVIDUAL ACCOUNTS | | | |
| Husband | $250,000 | | Wife | $250,000 | | Child | $250,000 | | |
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| | JOINT ACCOUNTS | | | |
| Husband and Wife | $250,000 | | Husband and Child | $250,000 | | Wife and Child | $250,000 | | |
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| | REVOCABLE TRUSTS | | | |
| Husband as Trustee for Wife | $250,000 | | Wife as Trustee for Husband | $250,000 | Husband and Wife Jointly as
Trustee for Child | $500,000 | | |
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Remember, your funds are safe. Not one penny of insured savings has ever been lost by a member of a federally insured credit union.
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