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$250,000
NCUA Share Insurance
Protection Now Permanent:
On July 21, 2010, President Barack Obama signed into law the
Dodd-Frank Wall Street Reform and Consumer Protection Act. Included
in this sweeping legislation are provisions making permanent the
current $250,000 maximum federal deposit insurance level, which had
been temporary until December 31, 2013.
Federally insured credit union member accounts are insured to at
least $250,000 by the National Credit Union Share Insurance Fund, a
federal insurance fund backed by the full faith and credit of the
U.S. Government.
A temporary increase from $100,000 to $250,000 was effective from
October 3, 2008, through December 31, 2009. On May 20, 2009, the
temporary increase was extended through December 31, 2013, and now
the $250,000 federal insurance protection becomes permanent.
The $250,000 coverage is per depositor, per
institution. If you have $300,000 you want insured in deposit
accounts at any bank, you can't simply divide it among a couple of
branches. You either have to use two separate institutions or you
could put it all in one institution under separately titled accounts.
These are deposit accounts but with different titles of ownership.
Here's an example of how a couple could insure $2 million at Polam
Federal Credit Union:
- Husband and wife each have
$250,000 in an individual account.
- They have $500,000 in a joint
account.
- Each has $250,000 in an
individual retirement account, or IRA.
- Each sets up a $250,000 revocable
trust account, payable on death,
naming each other as beneficiaries.
As always, credit union and bank-held retirement
accounts, such as IRAs, remain insured for $250,000 per depositor.
Congress permanently increased protection on those accounts April 1,
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