Federal Share Insurance
BACKED BY THE FULL FAITH AND CREDIT OF THE U.S. GOVERNMENT
Today’s economic unpredictability, tighter budgets, and volatile markets have created a degree of uncertainty and concern among us all. Our trust and security level regarding our personal finances and accounts sometimes need reassuring. Your State Credit Union is considered a safe and sound full service financial institution that is well capitalized and stable. The risk level associated with our investment and loan portfolios is considered moderate due to the fact that we have a stable member base, offer only traditional mortgage and home equity products, offer no business or commercial products and invest only in fully insured instruments.
The shares in your Credit Union are insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of the National Credit Union Administration (NCUA). Your share insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Company (FDIC).
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.
- As a member of an insured Credit Union, you do not pay directly for your share insurance protection.
- Most properly established share accounts in federally insured Credit Unions are insured up to the Standard Maximum Share Insurance Amount (SMSIA), which is $100,000 as of April 2006, but may be increased in the future. Recent legislation has 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, a husband and wife could qualify for $600,000 of insured funds without any retirement accounts and up to $1,100,000 with retirement accounts.
Please call us or visit the credit union if you need your account reviewed or you simply have a question. We offer personal financial reviews regarding your account structures and insurance options.
To learn more - and to access the NCUA Share Insurance Estimator - go to www.ncua.gov
or go to our website for more details www.wvpecu.org.
Notice to The State Credit Union Members
Your Federal Share Insurance is now $250,000
With the passage of HR 1424, the Emergency Economic Stabilization Act , signed into law on October 3, 2008, your federal share insurance coverage temporarily increased to at least $250,000. The new limits are effective upon enactment through December 31, 2009. Please refer to your newsletter for more information regarding your insurance coverage and additional resources.
Provided as Informational Purposes with Fall 2008 State Credit Union Newsletter