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National Credit Union Share Insurance Fund
The share insurance at SFCU is similar to deposit insurance provided by the Federal Deposit Insurance Corporation (FDIC). Share accounts in federally insured credit unions are insured up to $100,000, an amount equal to the insurance protection offered by the FDIC. Generally, if a credit union member has more than one individually vested account in the same insured credit union, those accounts are added together and are insured up to $100,000. There are exceptions, however. If a member has a regular share account and an Individual Retirement Account (IRA) in the same credit union, the regular share account is insured up to $100,000 and the IRA is insured separately up to $250,000 (as of April 1, 2006), and if a credit union member has more than one IRA account in the same insured credit union, those IRA accounts are added together and are insured up to $250,000. The NCUA Insurance booklet gives a more detailed explanation of insurance coverage.
Not one penny of insured savings has ever been 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, and liquidations or failures are usually done only as a 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 ration of equity to insured savings ranges from 1.25% to 1.30%.
As a member of Stanford Federal Credit Union, you do not pay directly for your share insurance protection. Stanford Federal Credit Union pays into the NCUSIF a deposit based on the total amount of insured shares in the Credit Union.
