SAVINGS ACCOUNT QUESTIONS

  1. Are my funds on deposit at the credit union insured?
  2. How much coverage do I have?
  3. What if I have multiple accounts, but they are not individual accounts? Are my funds covered for more than $100,000?
  4. Who pays for federal share insurance?
  5. Are funds in different credit unions insured separately?
  6. How are IRAs, Keogh and Deferred Compensation accounts covered?
  7. If I have a joint account with my spouse, do we each have $50,000 of coverage or $100,000?

Are my funds on deposit at the credit union insured?

Yes. U of M Credit Union is insured by the National Credit Union Share Insurance Fund, an arm of the National Credit Union Administration (NCUA). Funds (shares) on deposit at U of M Credit Union are protected by federal deposit insurance.

How much coverage do I have?

Share accounts in federally insured credit unions are insured up to $100,000 - just as with FDIC coverage at banks. Generally, if you have more than one individual account in the same insured credit union, those accounts are added together and are insured up to $100,000. Share accounts maintained in different legal ownership capacities may each be separately insured. 

What if I have multiple accounts, but they are not individual accounts? Are my funds covered for more than $100,000?

There are numerous combinations of accounts which can increase the total coverage. Here's a typical example:
Individual husband...................................... $100,000
Individual wife.............................................. $100,000
Husband & wife joint................................... $200,000
Revocable trust - husband/trustee wife..... $100,000
Revocable trust - wife/trustee husband..... $100,000

Total Coverage........................................$600,000
(There are many other combinations which can increase or decrease your level of coverage. However, dividing funds owned in the same categories will not increase the coverage. Only the legal ownership category can change the coverage.)

Who pays for federal share insurance?

The cost is borne by credit unions. As a member, you do not pay directly for your deposit insurance protection. The insurance fund is fully backed by the U.S. government. Not one penny of insured savings has ever been lost by a member of a federally insured credit union.

Are funds in different credit unions insured separately?

Yes. If you have accounts in several different insured credit unions, the maximum of $100,000 is applicable to your accounts in each insured credit union

How are IRAs, Keogh and Deferred Compensation accounts covered?

With federal share insurance through NCUA, these types of accounts are insured separately up to $100,000 from other accounts that you maintain at the same credit union. 

If I have a joint account with my spouse, do we each have $50,000 of coverage or $100,000?

Each account holder's interest in all joint accounts in one credit union is added together and insured up to the $100,000 maximum. This means that the maximum insurance coverage of any particular joint account could be greater than $100,000. In the case of a joint account owned by two persons, the coverage doubles to $200,000 ($100,000 for each account owner assuming either do not own any other joint accounts.) 

 
NCUAYour savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government
National Credit Union Administration, a U.S. Government Agency
Equal Housing Lender We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.