NCUA Share Insurance 

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 pwnership interest or rights in different types of accounts and you and you proerly 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 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 outline in NCUA Rules and Regulations.

Coverdell Education Saving Accounts, formerly education IRA's, 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 pay 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 to to the SMSIA.

The federal insurance fund has several programs to help insured credit unions which my 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.