The National Credit Union Administration (NCUA) is an independent agency of the United States Government that regulates, charters, and insures the nations federal credit unions. The NCUA insures and regulates credit unions, while the Federal Deposit Insurance Corporation (FDIC) insures and regulates banks. Both regulatory institutions are backed by the full faith and credit of the United States government. An important differentiator to remember about credit unions: not one penny of insured savings has ever been lost by a member of a federally insured credit union.
Types of Accounts Insured by the NCUA
All types of share accounts and deposits received by Affinity Plus are insured, including the following:
- Regular Share Accounts (ex. S1 Membership Savings, S6 Capitol Money Market, and more)
- Share Certificates (ex. I30 Certificate Builder, 12-month Certificate, and more)
- Share Draft Accounts (ex. S7 Free Checking, S14 Participation Checking: Better Than Free, and more)
In addition, retirement accounts are also insured and include the following:
- Individual Retirement Accounts (IRAs) (ex. Roth IRA, Traditional IRA, and more)
If you have accounts at other credit unions outside of Affinity Plus, the insurance applied to the share accounts at these credit unions is separate; it will not be added together. You will have coverage up to the full insurable amount in each of the credit unions.
How much are your accounts insured up to?
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. The information below reflects these changes.
There are four general types of accounts, excluding business accounts, that the NCUA insurance addresses. They are the following:
- Retirement accounts (ex. IRAs) - Insured up to $250,000
- Individual accounts with one owner and no beneficiaries - Insured up to $250,000 in the aggregate
- Joint accounts that have more than one owner and no beneficiaries - Each owner is insured up to $250,000 for joint account coverage in the aggregate
- Trust accounts (informal) - Revocable trust accounts: if there is a beneficiary on the account, the account owner will receive up to $250,000 per beneficiary in the aggregate.
All memberships with Affinity Plus are insured up to $250,000 by the NCUA. Generally, if you have more than one account with Affinity Plus, those accounts are added together and insured in the aggregate.
Example: If you have money in a share account (ex. S1 Membership Savings), a share certificate (ex. I30 CD Builder), and a share draft account (ex. S14 Participation Checking: Better Than Free) all in your name alone, these accounts will be added together and insured up to $250,000.
However, there are exceptions:
Example: If you have money in your share account (ex. S1 Membership Savings) and an Individual Retirement Account (IRA) with Affinity Plus, the share account is insured up to $250,000 and the IRA is separately insured up to $250,000.
Click here for additional examples of coverage.
To learn more about insurance coverage under the NCUA, please refer to the Your Insured Funds brochure located at any Affinity Plus branch location or access the NCUA Web site at www.ncua.gov.