Your Share Insurance Coverage
FedChoice INSURES our members' hard earned savings more than any bank!
Deposits are now insured up to $500,000. The National Credit Union Administration (NCUA) insures members’ aggregate savings up to $250,000. Then, FedChoice kicks in an additional $250,000 of coverage, provided by Excess Share Insurance Corporation (ESI) for an aggregate insurance coverage of $500,000.
IRA investments are also insured up to $500,000. The NCUA insures members’ aggregate IRA investments up to $250,000. Then, FedChoice kicks in an additional $250,000 of coverage, provided by ESI for an aggregate insurance coverage of $500,000.
National Credit Union Share Insurance Fund (NCUSIF)
The shares in your credit union are insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of NCUA. Established by Congress in 1970 to insure member share accounts at federally insured credit unions, the NCUSIF is managed by NCUA under the direction of the three-person NCUA Board. Your share insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation (FDIC) for deposits made at federally insured banks.
Most properly established share accounts in federally insured credit unions are insured up to the Standard Maximum Share Insurance Amount (SMSIA), which is currently $250,000.
Generally, if a credit union member has more than one account in the same credit union, those accounts are added together and insured in the aggregate. There are exceptions, though. You may obtain additional separate coverage on multiple accounts, but only if you have different ownership interests or rights in different types of accounts and you properly complete account forms and applications. For example, if you have a regular share account and an Individual Retirement Account (IRA) at the same credit union, the regular share account is insured up to $250,000 and the IRA is separately insured up to $250,000.
However, if you have a regular share account, a share certificate, and a share draft account, all in your own name, you will not have additional coverage. Those accounts will be added together and insured up to $250,000 as your individual account. Additionally, shares in foreign currency denominations are insured as outlined in NCUA Rules and Regulations. Click for more information ncua.gov.
Excess Share Insurance (ESI)
Excess Share Insurance (ESI) is provided by a private insurance corporation which is paid for by FedChoice (at no cost to the member) and provides additional coverage of up to $250,000 per member on both deposits and IRA investments. American Share Insurance (ASI), the parent company of ESI, has an equity ratio which is greater than that reported by federal deposit insurance funds. And, the majority of ASI’s assets are held in cash and US government-guaranteed bonds and US Treasury Securities.