The shares in your credit union are insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of the National Credit Union Administration (NCUA). The NCUSIF is backed by the full faith and credit of the United States government. Your share insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation (FDIC). Here are some important facts to remember about your share insurance:
- Not one penny of insured savings has ever been lost by a member of a federally-insured credit union. The federal insurance fund has several programs to help insured credit unions that may be experiencing problems. Liquidations or failures are a last resort. If a federally-insured credit union does fail, however, the NCUSIF will make any necessary payouts to the credit union’s members. These payouts are usually done within 3 days from the time the credit union closes its doors.
- Most properly established share accounts in federally-insured credit unions are insured up to the Standard Maximum Share Insurance Amount, which is $250,000 as of December 2008. The insurance coverage on certain retirement accounts, such as IRAs and Keoghs, also is $250.000.
- The NCUA Share Insurance Estimator on the NCUA website is an educational resource about share insurance and gives a detailed explanation of insurance coverage. Complete information about NCUSIF insurance can be found on the NCUA website.
Download the brochure titled "Your Insured Funds" to get examples of insurance coverage under NCUA’s rules.