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NCUA Share Insurance
CU SoCal Members now
benefit from additional account protection.
Your shares at CU
SoCal are insured by the National Credit Union Share Insurance Fund (NCUSIF)
– an arm of the NCUA – our governing organization. This insurance is
very similar to the deposit protection offered by the Federal Deposit
Insurance Corporation (FDIC). As a Member of CU SoCal, you can have
peace of mind knowing that not one penny of insured savings has ever
been lost by a Member of this, or any federally insured credit union.
As a Member of
a federally insured credit union, you do not pay
directly for your share insurance protection. Your
credit union places a deposit into the NCUSIF and pays
an insurance assessment based on the total amount of
insured shares and deposits in the credit union.
Federally insured credit unions are required to deposit
and maintain one percent of their insured shares and
deposits in the NCUSIF.
Share accounts in federally insured credit unions are
insured up to the Standard Maximum Share Insurance
Amount (SMSIA), $250,000 as of October 3, 2008. The
Emergency Economic Stabilization Act of 2008 increased
the insurance coverage on all accounts up to $250,000
until December 31, 2009.
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.
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 on a per beneficiary basis. A
co-owner’s interest in all joint accounts in the same
credit union will be added together and insured up to
the SMSIA. |
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If you have any
questions regarding the insurance protection of your account, please
don’t hesitate to contact us toll-free at 866 CU SoCal, 866.287.6225 or
email info@CUSoCal.org.
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