Accounts Insured to $250,000.
In an uncertain economy, one thing you can be certain of is that your money is safe at your credit union. The federal government has increased insurance coverage on your savings to $250,000.
The Helping Families Save Their Homes Act of 2009, signed into law on May 20, 2009, continued an increased level of insurance coverage on all accounts of up to $250,000 through December 31, 2013.
Savings in every federally insured credit union are backed by the National Credit Union Administration (NCUA) with money in a fund maintained by the U. S. Treasury. Federal insurance protects your money at your credit union held in share savings, share draft/ checking, money market, share certificate, trust, and retirement accounts.
And funds in a federally insured credit union can be insured to even more than $250,000, depending on how you establish your accounts. For instance, jointly owned accounts and accounts with named beneficiaries are separately insured up to $250,000. IRAs (individual retirement accounts) still are separately insured up to $250,000.
The NCUA coverage for credit unions is the same as the FDIC (Federal Deposit Insurance Corporation) coverage for banks. Both funds are backed by the “full faith and credit” of the U. S. government.
You have other safeguards as well. Your credit union operates with a safety net of capital that helps each credit union weather temporary setbacks. The credit union also maintains an “allowance for loan losses” that provides an additional cushion to anticipate losses when some members fail to repay loans.
And every credit union is examined regularly by either the NCUA or a state credit union government agency to make sure it’s engaging in safe and sound operations. Regulators hold credit unions to high standards.
No matter how scary the financial news reports, the people at your credit union are looking out for you and your funds. You can be assured that your money is safe at your credit union.