National Credit Union Share Insurance Fund (NCUSIF) and the National Credit Union Administration (NCUA)
City of Boston Credit Unions share accounts are federally insured by the National Credit Union Share Insurance Fund (NCUSIF), which is operated by the National Credit Union Administration (NCUA), a federal government agency that charters and supervises federal credit unions. Backed in full faith and credit of the U.S. government, NCUSIF insures the accounts of millions of account holders in all federal credit unions and the majority of state-chartered credit unions.
The NCUSIF provides all members of federal insured credit unions with $250,000 in coverage for their individual accounts. These accounts include regular shares, share drafts (checking accounts), money market accounts, and share certificates. For more information about the NCUA and the NCUSIF please click here.
Not one penny of insured savings gets lost by a Member of a federally insured credit union. The federal insurance fund has several programs to help insured credit unions which may be experiencing problems; liquidations or failures are done only as last resort. If a federally insured credit union does fail, however, the National Credit Union Share Insurance Fund (NCUSIF) will normally make any necessary payouts within two weeks of the time the credit union closes its doors.
Insured credit unions are required to deposit and maintain 1% of their insured shares in the NCUSIF. The fund is currently at the strongest and best reserved level in its history. Historically, deposit insurance funds strive for a ratio of equity to insured savings of a least 1%. NCUSIF ratio of equity to insured savings ranges from 1.25% to 1.30%.
Notice of Changes in Temporary NCUA Insurance Coverage for Transaction Accounts
All funds in a "noninterest-bearing transaction account" are insured in full by the National Credit Union Administration through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to members under the NCUA's general share insurance rules.
The term "noninterest-bearing transaction account" includes a traditional share draft account (or demand deposit account) on which the insured credit union pays no interest or dividend. It does not include any transaction account that may earn interest or dividends, a negotiable order of withdrawal ("NOW") account, money-market deposit account, and Interest on Lawyers Trust Account ("IOLTA"), even if share drafts may be drawn on the account.
For more information about temporary NCUA insurance coverage of transaction accounts, visit www.ncua.gov.
Massachusetts Credit Union Share Insurance Corporation (MSIC)
City of Boston Credit Union also maintains Excess Share and Deposit Insurance through Massachusetts Share Insurance Corporation (MSIC) on all shares, thereby insuring all shares in full above the level insured by the federal government, with no limits.
As a Member of City of Boston Credit Union, you do not pay directly for your share insurance protection. City of Boston Credit Union pays into the NCUSIF a deposit based on the total amount of insured shares in the Credit Union and based upon the excess share coverage into MSIC. For more information about MSIC insurance visit msic.org.
