Your
Money is Safe at Berks Community Federal Credit Union. The
Credit Union is Federally Insured!
The National Credit Union
Administration insures all federal and most state-chartered
credit unions. NCUA is backed by the full faith and credit
of the U.S. Government, just like the FDIC. NCUA insures
accounts up to at least $250,000.00. IRA and Keogh accounts
are insured separately to $250,000.00
Here are some important facts to remember about your
share insurance provided by the NCUSIF:
Not one penny of insured savings has ever been lost by a
member of a 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.
The federal insurance fund has several programs to help
insured credit unions which may be experiencing problems.
Liquidations or failures are a last resort. If a federally
insured credit union does fail; however, the NCUSIF will
make any necessary payouts to the credit union’s
members. These payouts are usually done within 3 days from
the time the credit union closes its doors.
