We are pleased to inform you that your savings in this credit union are now protected up to $500,000 - the highest level of combined federal/private savings insurance available. This coverage is available through the addition of excess coverage from the Excess Share Insurance Corporation (ESI).
Unlike banks and thrifts, credit union member deposits are insured up to $250,000 by the National Credit Union Administration (NCUA), an agency of the federal government, or by American Mutual Share Insurance Corporation (ASI), a private deposit insurance fund that operates in nine states. To learn more about American Share, click here. In the information that follows, credit unions insured by the NCUA are referred to as "federally insured" and credit unions insured by American Share are referred to as "privately insured." In general, the coverage provided members of federally insured credit unions is $250,000 per member, irrespective of how many accounts each member holds with a specific credit union; whereas, each depository account of a member at a privately insured credit union is insured to $250,000 -- irrespective of the number of depository accounts each member has with that privately insured credit union. The following explains the amount of additional share insurance protection ESI can provide members of federally insured credit unions as compared to members of a privately insured credit union.
While the basic coverage of a member’s deposit accounts at a federally insured credit union is $250,000 per member, there are various exceptions to this rule, and more information regarding the full extent of federal share insurance coverage is available at www.ncua.gov. The following offers a general explanation as to how ESI’s Excess Share Insurance adds additional protection to the individual share/deposit, joint share/deposit, share draft/checking, money market, share certificates of deposit/CDs and individual retirement accounts/IRAs of members at a federally insured credit union.
A member’s individual share/deposit accounts at a federally insured credit union are insured to $250,000 in the aggregate. Individual share accounts generally include a person’s regular share/savings accounts, share draft/checking accounts, certificates of deposit/CDs and money market accounts. The $250,000 of federal share insurance is limited to the sum of the classes of these individual share accounts, irrespective of how many such class of accounts one member may hold with the federally insured credit union. With ESI Excess Share Insurance in place, a member may have as much as an additional $250,000 of coverage, raising their total deposit insurance protection on their individual share accounts to as much as $500,000. Some federally insured credit unions limit the amount of Excess Share Insurance to an amount less than $250,000 for this class of accounts, so please check with your credit union to better understand the exact amount of coverage available on any and all of your individual share accounts.
Many members of federally insured credit unions hold accounts jointly with other members of their families or others. Federally insured credit unions insure joint accounts separately from individual accounts, affording members additional protection. As a result, a member of a federally insured credit union could have $250,000 in coverage on their collective individual accounts and still be protected for up to an additional $250,000 in federal share insurance on their joint account. In calculating the amount of federal share insurance, a member must add up all of their respective balances held in joint accounts, which is protected by the NCUA. Excess Share Insurance, when in effect for this class of account, adds up to another $250,000 to the base coverage provided by the NCUA. With federal share insurance of $250,000 and Excess Share Insurance of $250,000, the member’s interest in joint accounts is now insured to $500,000. Again, your credit union may have elected to have less than $250,000 of coverage applied to joint accounts, so please check with your credit union.
Like joint accounts, members of federally insured credit unions receive separate coverage for their collective deposits in individual retirement accounts/IRAs. Under federal share insurance, the sum of a credit union member’s deposits in individual retirement accounts is protected to a maximum of $250,000, above and beyond the $250,000 in that member’s individual share accounts and joint accounts. Excess Share Insurance, when in effect for this class of account, adds up to another $250,000 to the base coverage provided by the NCUA. With federal share insurance of $250,000 and Excess Share Insurance of $250,000, your interest in your individual retirement accounts at a federally insured credit union is now as much as $500,000. Coverage provided by ESI on your IRA accounts may be less than $250,000.
Our success can be attributed to thorough underwriting and risk management policies and practices. We are selective as to who we insure, and not all credit unions that apply for coverage are accepted due to ESI’s strict underwriting standards. Furthermore, we examine our credit unions regularly to ensure continued safety and soundness. Also, ESI’s insurance policy requires that every credit union submit financial statements and a listing of accounts eligible for excess coverage quarterly in order to continue coverage.
ESI is not assigned an insurance industry rating by A.M. Best. Financial data and other information are supplied to rating services annually for their review and analysis. Our audited financial statements are available upon request from your credit union or ESI.
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