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%.
Massachusetts Credit Union Share Insurance Corporation (MSIC)
City of Boston Credit Union also maintains excess insurance through Massachusetts Share Insurance Corporation on all shares, thereby insuring all shares in full to the statutory limits. That limit is currently $600,000 for individual accounts and $1,200,000 for joint accounts.
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.
