The Federal Deposit Insurance Corporation (FDIC) does not insure credit union deposits, called shares. If a credit union participates in the federal credit insurance program, its shares are insured by the National Credit Union Share Insurance Fund (NCUSIF), which is overseen by the National Credit Union Administration (NCUA). Shares are protected within the limits of that insurance.

The maximum coverage for a federally-insured share account was $100,000. Legislation enacted in response to the subprime mortgage situation increased that coverage to $250,000, but only temporarily. Updated legislation extended the increase in coverage, now set to end in December 2013. If you have multiple accounts, individual retirements accounts (IRAs), Keogh accounts, trust accounts, or joint accounts, or if you participate in other specialized services, you should check with your credit union or the NCUA to verify the amount of coverage for each account or for your total balance.

An account holder with multiple accounts at the same credit union should be aware that the insurance might cover these accounts as one sum. If the entirety of your balances exceeds the maximum amount, that portion of your money exceeding that amount may be at risk. To find out if your shares are fully covered, see the NCUA Web site and consult the NCUA Share Insurance Estimator for more information. 

The first step to take when considering opening a credit union account (or if you are already a member but unsure if you are covered) is to verify that the credit union is a member of the NCUSIF. Inquire at the credit union or look for the NCUA logo. Participation in the federal insurance program is voluntary, and not all credit unions are covered. If a credit union is covered, it cannot cancel federal insurance coverage without prior notification to all members.

To feel at ease that your account is safe, follow a few simple guidelines:

1.         verify that the credit union is federally insured,

2.         keep less than the federally insured amount deposited in a single credit union; and

3.         confirm that the accounts comply with NCUSIF rules.

Additional Resources:

--    The Credit Union National Association (CUNA) at www.cuna.org/  

--    The National Credit Union Administration (NCUA) at www.ncua.gov/Default.aspx

--    National Credit Union Administration Electronic Share Insurance Calculator at webapps.ncua.gov/ins/