When you deposit your money with CCCU, it's protected against loss up to $250,000 by the NCUA (National Credit Union Administration). Essentially, it's the same protection the FDIC offers its bank customers. This insurance protects you from the loss of your principal deposit of at least $250,000 in the case of a failure or serious financial impairment of the financial institution.
EXAMPLE FOR MAXIMIZING COVERAGE
The following example shows how a family of four (Mother Jane, Father Tom, and two children Bobby and Charlotte) can maximize share insurance coverage.
ACCOUNT TITLE
AMOUNT OF COVERAGE
SINGLE ACCOUNT OF JANE
$250,000
SINGLE ACCOUNT OF TOM
$250,000
JOINT ACCOUNT OF TOM & JANE
$500,000
IRA FOR JANE
$250,000
IRA FOR TOM
$250,000
TOM, POD FOR BOBBY & CHARLOTTE
$500,000
JANE, POD FOR BOBBY & CHARLOTTE
$500,000
TOTAL
$2,500,000
The slide show below will walk you through the basics of share insurance. The slides focus on the types of accounts, and how to set up your accounts to maximize coverage. There are real-world examples to help you understand share insurance coverage.
ABOUT NCUA SANCTION
The NCUA cannot officially sanction and approve these examples because, although generally accurate, they are designed to simplify in layman's terms rather complex rules that in some circumstances may only be fully understood in the statutory and regulatory context in which they were written.
For more information about the NCUA, visit the NCUA website at
http://www.ncua.gov.
INSURING REVOCABLE TRUSTS
Funds deposited into Revocable Trust Accounts whose beneficiaries are natural persons, as well as charitable organizations and other non-profit entities are separately insured to $250,000 (in addition to the insurance on valid individual and joint accounts). They provide that, upon the owner's death, funds will pass to a named beneficiary. For members with Revocable Trust Accounts totaling no more than $1,250,000, coverage will be determined without regard to the proportional beneficial interest of each beneficiary in the trust.
A trust account owner with up to five different beneficiaries named in all of his or her Revocable Trust Accounts at one NCUA-insured institution will be insured up to $250,000 per beneficiary. Revocable Trust Account owners with more than $1,250,000 and more than five different beneficiaries named in the trust will be insured for the greater of either: $1,250,000 (5X$250,000) or the aggregate amount of all the beneficiaries' interests in the trust(s), limited to $250,000 per beneficiary. The person who has the power of revoking the trust is considered the owner of the account.
INSURING IRAs
In addition to the coverage shown in the chart, any funds in an IRA account are eligible for separate insurance protection up to $250,000. They are not included in this chart because they are subject to special rules for deposits and withdrawals.
For additional information on insuring IRA accounts, please contact CCCU at 503.232.8070.
INSURING JOINT ACCOUNTS
In addition to their individual insured accounts, each person is entitled to a maximum of $250,000 coverage for their interest in all of their joint accounts. Insurance protection is not increased by merely rearranging the names of owners, changing the style of names, or by having more than one joint account for the same combination of owners in the same insured credit union.
Each co-owner of a joint account must have equal withdrawal rights and must personally execute a signature card, except in the case of jointly held share certificates or shares represented by negotiable instruments. Jointly held share certificates of deposit must in fact be jointly owned to be insured as a joint account.
A husband and wife, or any two or more persons, may have a valid joint account covered for the total amount allowed for each person in the joint account category. For example, since each co-owner is deemed to have an equal interest, a husband and wife could have one joint account with $500,000 fully covered. In this example, neither of them would be eligible for coverage of any amounts in any other joint accounts at the same insured credit union. As another example, three siblings could have a joint account containing $750,000, all fully insured with each of the three deemed to be insured for $250,000. Again, in this example, any amounts in joint accounts at the same insured credit union with the same or other persons would not be covered by share insurance.
