Checking | Overdraft
Privilege | Savings | Regulation D | CDs & IRAs | Credit Cards | Investment Alternatives | Loans | Services |
At River City Federal Credit Union, most regular share
accounts are insured to at least $250,000 by the National Credit
Your Insured Funds | Sus Fondos Asegurados
read the NOTICE below.
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). The NCUA
Share Insurance Estimator is an educational resource about
share insurance and gives a detailed explanation of insurance coverage.
The Your Insured Funds brochure gives a more detailed explanation
of your insurance coverage.
Credit unions that are insured by the NCUSIF must display in their
offices the official NCUA insurance sign which appears on the cover
of this brochure. All federal credit unions must be insured
by NCUA, and no credit union may terminate its federal insurance
without first notifying its members.
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 which 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.
As a member of an insured credit union, you do not pay directly
for your share insurance protection. Your credit union pays
into the NCUSIF a deposit, and an insurance assessment, based on
the total amount of insured shares and deposits in the credit union.
Insured credit unions are required to deposit and maintain one
percent of their insured shares and deposits in the NCUSIF. The
NCUSIF is backed by the full faith and credit of the United States
Most properly established share accounts in federally insured
credit unions are insured up to the Standard Maximum Share Insurance
Amount (SMSIA). The Helping Families Save Their Homes Act of 2009,
signed into law May 20, 2009, includes a provision extending $250,000
share insurance coverage provided by the National Credit Union
Share Insurance Fund through December 31, 2013.
legislation has also increased the insurance coverage on certain
retirement accounts, such as IRAs and Keoghs, up to $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 denominated in foreign currencies are insured as outlined
in NCUA Rules and Regulations.
Roth IRAs and Coverdell Education Saving Accounts, formerly education
IRAs, are insured as irrevocable trust accounts and will be added
to a member’s other irrevocable trust accounts and insured
up to the SMSIA. Roth IRAs will be added together with traditional
IRAs and insured up to $250,000.
Additional coverage is available on revocable trust or payable
on death accounts. You can now name a parent or sibling as
a beneficiary to get separate coverage. Previously, beneficiaries
had to be a spouse, child or grandchild.
The rules on joint accounts have been simplified. A co-owner’s
interest in all joint accounts in the same credit union will be
added together and insured up to the SMSIA.
Since the scope of this information is limited, credit union members
may wish to contact NCUA for greater detail concerning the technical
aspects of insurance coverage. Members or their counsel may also
wish to consult the NCUA Rules and Regulations relating to share
insurance coverage published in the Code of Federal Regulations
(12 C.F.R. 745). You can find NCUA's insurance regulations at www.ncua.gov
under "General Information."
NCUA's specific rules on insurance coverage control how accounts
will be insured. Members are advised that no persons may, by representations
or interpretations, effect the extent of insurance coverage provided
by the Federal Credit Union Act as amended and the rules and regulation
for insurance of share accounts. Also, members are advised to review
their accounts annually and whenever they open new accounts or modify
existing accounts to ensure that all of their funds continue to