NCUA Deposit Insurance


The shares in your credit union are insured by the National Credit Union Share Insurance Fund (NCUSIF) or the Fund, an arm of the National Credit Union Administration (NCUA).  Established by Congress in 1970 to insure member share accounts of participating credit unions, the NCUSIF is managed by NCUA under the direction of the three-person NCUA Board.  All federal credit unions and numerous state chartered credit unions, including all credit unions in Nebraska, are insured by NCUSIF.

Your share insurance is similar to deposit insurance provided by the Federal Deposit Insurance Corporation (FDIC).  Share accounts in federally insured credit unions are insured up to $250,000, an amount equal to the insurance protection offered by the FDIC. The Emergency Economic Stabilization Act of 2008 increased the insurance coverage on all accounts up to $250,000. On July 21, 2010 President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act, which makes permanent the insurance coverage on all accounts up to $250,000. (This supersedes the October 3, 2008 and December 31, 2009 changes.)

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, and liquidations or failures are usually done only as a last resort.  If a federally insured credit union does fail, however, the NCUSIF will make any necessary payout to the credit unions' members.
The NCUSIF is currently at the strongest and best reserved level in its history.

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.

Life Savings Insurance

Another reason it makes sense to save at the credit union is members receive an added benefit of life insurance coverage on their share deposits with no direct cost.

Life Savings Insurance is a level term life insurance policy covering regular share/savings accounts with a maximum benefit of $4,000.00.  The amount of insurance is based on the insured balance in share/savings on the date of death and the age of the insured at the time of each deposit. 

There is a pre-existing condition limitation and deposits made after age 70 are excluded from life savings insurance.

Brochures explaining the benefits and exclusions of Life Savings Insurance are available at the credit union.