National Credit Union Share Insurance Fund

National Credit Union Share Insurance Fund

The National Credit Union Share Insurance Fund (NCUSIF) is the federal fund created by Congress in 1970 to insure member's deposits in credit unions up to the $100,000 federal limit. Administered by the National Credit Union Administration, the NCUSIF is backed by the "full faith and credit" of the U.S. Government. How the Fund is financed The NCUSIF maintains at or near 1.30 percent of federally insured credit union deposits. By law, federally insured credit unions maintain 1 percent of their deposits in the NCUSIF and the NCUA Board can levy a premium if necessary. Credit unions voluntarily capitalized the Fund in 1985 by depositing 1 percent of their deposits into the Fund. NCUA Share insurance helps to maintain sound conditions in the credit union industry and protect those insured in the event of failure of an insured credit union due to insolvency or bankruptcy.

What are savings?

For share insurance purposes, savings are funds deposited by the credit union member into his or her own credit union account. In more technical terms, they are funds used by the member to purchase shares in the credit union either as share accounts, share draft accounts, christmas club accounts, certificates of deposit, or money market accounts.

How does NCUA share insurance protect?

Each credit union approved for insurance must meet high standards. Adherence to these standards is determined regularly though credit union examinations by federal or state examiners. If, despite these precautions, an insured credit union falls into financial difficulty and must be closed for the purpose of liquidation because of insolvency, savings will be protected up to a maximum of $100,000.

What is the basic protection afforded by the insurance?

The basic insured amount for a member is $100,000. Accounts maintained in different rights or capacities are each insured to $100,000. Thus, a member may hold or have interest in more than one type of an insured account in the same insured credit union for an insured total in excess of $100,000. If this is a subject that may concern you please contact the credit union at 618-465-2504 and inquire about more information on this subject.

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Laclede Credit Union 3401 East Broadway Alton Il. 62002 Phone: 618-465-2504 Fax: 618-465-1542