What is the purpose of NCUA's NCUSIF?

The NCUSIF protects members' accounts in federally insured credit unions, in the unlikely event of a credit union failure. The NCUSIF covers the balance of each members' account, dollar-for-dollar up to the insurance limit, including principal and posted dividends through the date of the failure.

What is the NCUSIF insurance amount?

Properly established member accounts in federally insured credit unions are insured up to the Standard Maximum Share Insurance Amount (SMSIA). The basic insurance amount is $250,000 per individual account holder, per federally insured credit union. This includes principal and posted dividends up to a total of $250,000. Joint account holders are insured up to $250,000 per joint account holder, per federally insured credit union. For example, an account with two joint account holders is insured for $500,000 separately from the holders' individual accounts. This includes principal and posted dividends. IRA and KEOGH accounts are insured, separate from other accounts, up to $250,000 per institution, including principal and posted dividends.

What does NCUSIF insure?

The NCUSIF insures all types of deposits received by a credit union in its usual course of business. For example, savings accounts, share draft (checking) accounts, money market accounts, and share certificates (certificates of deposit "CDs") are all insured by the NCUSIF.

What is not insured by NCUSIF?

The NCUSIF does not insure the money individuals invest in stocks, bonds, municipal bonds, or other securities such as mutual funds (including money market mutual funds, and mutual funds that invest in stocks, bonds and other securities); annuities (which are contracts underwritten by insurance companies that guarantee income in exchange for a lump sum or periodic payment); or insurance products such as automobile and life insurance, even if these products were purchased at a federally insured credit union or through an affiliated broker/dealer/insurance agent that is offering these products on behalf of a federally insured credit union.

The NCUSIF does not insure U.S. Treasury bills, bonds, or notes, but these are backed by the full faith and credit of the U.S. Government.

Also, the NCUSIF doesn't cover valuables in safe deposit boxes. These contents; however, may be covered by a box holder's personal homeowner's insurance.

What types of financial institutions are insured by NCUA's NCUSIF?

NCUA insures accounts in all federally chartered credit unions and most state-chartered credit unions. All NCUA insured institutions must display this official sign at each teller window or teller station.

Can insurance coverage be increased by dividing my deposits into several different accounts at the same federally insured credit union?

Share insurance coverage can be increased only if accounts are held in different categories of ownership. These categories include the four most common consumer ownership categories: single owner accounts, retirement accounts, joint accounts, and revocable trust accounts; and less common ownership categories such as irrevocable trust accounts, employee benefit plan accounts, corporation, partnership and unincorporated association accounts, and public unit or government depositor accounts.

A credit union member cannot increase federal insurance by dividing funds owned in the same ownership category among different accounts. The type of member account - whether savings accounts, share draft (checking) account, or share certificate (certificate of deposit "CD") - has no bearing on the amount of insurance coverage.

Can insurance coverage be increased by using a different co-owner's Social Security number on each account or changing the way the owners' names are listed on the accounts?

Using different Social Security numbers, rearranging the order of names listed on accounts or substituting "and" for "or" in joint account titles does not affect the amount of insurance coverage available to account owners.