NCUA and ESI
National Credit Union Administration (NCUA) Deposit insurance
The shares in your credit union are insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of NCUA. Established by Congress in 1970 to insure member share accounts at federally insured credit unions, the NCUSIF is managed by NCUA under the direction of the three-person NCUA Board. Your share insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation (FDIC). Share accounts in federally insured credit unions are insured 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 up to $250,000.
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.
There are exceptions. You may obtain additional insurance coverage on multiple accounts, if you have different ownership interests or rights in different types of accounts and you properly complete account forms and applications. For example, a regular share account is insured up to $250,000 and an individual IRA account at the same credit union is insured up to $250,000. However, if you have a regular share account, share certificate account and 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.
Excess Share Insurance
Member savings in this credit union are now protected up to $500,000, the highest level of combined federal/private share savings insurance available. This coverage has become available through the addition of excess coverage from the Excess Share Insurance Corporation (ESI).
LLCU now provides $250,000 in deposit coverage on top of the federal government's $250,000. And because Individual Retirements Accounts (IRAs) are insured separately, they are now protected up to $500,000 as well. So, by maintaining your non-retirement savings and your IRA at the credit union, you may now have a combined savings insurance of $1,000,000.
ESI is a wholly owned subsidiary of American Share Insurance (ASI), the nation's largest private deposit insurer, and insures only credit unions meeting its high standards.
If you would like more information about share savings insurance on your accounts, please contact us or visit the ESI website at www.excessshare.com.