Understanding how your accounts are insured
SEFCU values the trust you have placed in us as your financial institution. That’s why we want to ensure that you understand the insurance protection you have as a credit union member.
The National Credit Union Administration (NCUA) is the federal government agency that charters and supervises federal credit unions. NCUA also manages the National Credit Union Share Insurance Fund (NCUSIF). Backed by the U.S. government, NCUSIF insures the accounts of millions of account holders in all federal credit unions, including SEFCU, and the majority of state-chartered credit unions as well.
To help you understand more about the insurance coverage, SEFCU has answered some of the most commonly asked questions below.
Q. Is my money FDIC insured?
A. SEFCU members are insured by the NCUA which is the credit union equivalent to the FDIC.
Q. How much insurance do I have?
A. Individual credit union accounts are insured up to at least $100,000, but there are also options for higher coverage, depending on the ownership status of the accounts (whether it’s an individual, joint, or trust ownership). In the case of trusts, additional insurance is available by adding qualified beneficiaries (defined as spouse, child, grandchild, parent, brother or sister) to the account.
Q. How is my IRA insured?
A. Certain retirement accounts like IRAs and Keoghs (self-employed retirement plans), are insured separately from regular share accounts up to $250,000.
Q. How does the NCUA insurance coverage work?
A. 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 $100,000 and the IRA is insured separately 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 coverage over $100,000. Each account balance will be added together and insured up to $100,000. Also, if you have joint accounts, those accounts are insured separately from your individual accounts(s) up to an aggregate total of $100,000.
Q. I have more than $100,000 on deposit at SEFCU. How can I get additional protection?
A. Depending on the ownership status of your accounts (whether it is an individual, joint, or trust ownership) your coverage may already exceed $100,000. In the case of trusts, additional insurance is available by adding qualified beneficiaries (defined as spouse, child, grandchild, parent, brother or sister) to the account. In addition, certain retirement accounts, such as IRAs and Keoughs (self-employed retirement plans) are insured up to $250,000.
Q. Where can I get additional information?
A. Visit this link provided by the NCUA for more details about your account insurance. http://www.ncua.gov/Publications/brochures/FCUFacts/HowAccountInsured_7P.pdf