What NCUA Federal Insurance Means to Credit Union Members
Although we use its logo proudly, what NCUA federal insurance means isn’t always clear to credit union members. To us, it’s a required standard that we wouldn’t dream of going without even if we could. Following are some of the basics about NCUA insurance.
What is the NCUA?
The National Credit Union Administration is an independent agency of the United States government that regulates, charters, and supervises federal credit unions. NCUA also operates and manages the National Credit Union Share Insurance Fund. Backed by the full faith and credit of the U.S. government, the NCUSIF insures the accounts of millions of account holders in all federal credit unions and most state-chartered credit unions.
What NCUA Federal Insurance Means to You
Share insurance coverage offered through the NCUSIF protects members against losses if a federally insured credit union should fail. However, such failures are extremely rare because only credit unions with sound operational standards qualify to receive NCUSIF coverage.
The NCUSIF provides all members of federally insured credit unions $250,000 in coverage for their single ownership accounts. These accounts include regular shares, share drafts, money market accounts, and share certificates. Individuals who have more than $250,000 at any single credit union may have several options for additional share insurance coverage.
Additionally, all members of federally insured credit unions may have options for coverage that is separate from and in addition to the coverage available for single ownership accounts. Protection may be available for retirement accounts, joint accounts, trust accounts, revocable trusts, and irrevocable trusts.
Georgia Heritage Federal Credit Union and the NCUA
Being backed by this insurance through the federal government provides us and our members with added peace of mind.
You probably regularly see the NCUA logo at our credit union branches and on various pieces of literature. That’s because federally insured credit unions are required to indicate their insured status in their advertising and to display the official NCUSIF insurance sign in their offices and branches.
If you want to know more about what NCUA federal insurance means to credit union members, a comprehensive booklet is available at ncua.gov and mycreditunion.gov. You may also speak with one of our branch associates for additional details.