About NCUA Insurance
on Your
Credit Union Savings
Your Goldmark Federal Credit Union accounts are insured up to $100,000 per person by the National Credit Union Share Insurance Fund (NCUSIF). Individual Retirement Accounts (IRA) are insured separately up to $100,000. The National Credit Union Administration (NCUA), a federal agency, administers the insurance fund and regulates federally insured credit unions. The fund is backed by the full faith and credit of the U.S. Government. No one has ever lost a penny in a federally insured credit union.
Depending on how your accounts are owned and what types of accounts you have, you can increase the total insurance on your funds to greater than $100,000.
An Individual Account is one owned by a single member. The total balances in a member's Individual Accounts at one credit union are insured up to $100,000. This includes the combined amounts in all savings, checking, money market, and certificate accounts. The amounts a member may have in IRAs, joint accounts, and revocable trust accounts to not count toward this total.
A Joint Account is owned by more than one person. Each Joint Owner has equal rights and access to the funds in the account. Each Joint Owner has signed the application for the account. A common example would be an account jointly owned by a husband and wife.
Under NCUA regulations, each Joint Owner gets up to $100,000 coverage for their "share" of the funds in jointly owned accounts. For example, if two Joint Owners have $200,000 in their jointly owned accounts at an institution, the full amount is covered - $100,000 for each owner. If there are three Joint Owners, the maximum coverage is $300,000 - $100,000 for each joint owner.
Each individual is limited to $100,000 maximum coverage for funds in Joint Accounts at one credit union, even if there is more than one combination of joint owners.
The funds in a Revocable Trust Account, also known as a Totten Account or "payable on death" account (POA), is paid to named beneficiaries in the event of the owner's death. While living, the owner has use of the funds and can revoke the trust (remove or change beneficiaries).
If the beneficiaries of a Revocable Trust Account are a spouse, child, grandchild, parent, or sibling of the owner, the funds in the account are separately insured to $100,000 per beneficiary, (in addition to any insurance on valid individual and joint accounts).
To qualify for coverage under NCUA regulations,
there are several conditions that must be met:
Beneficiaries must be a qualifying family member. Beneficiaries
must be specified in the account records.
The title of the account
must include a term such as in trust for or payable
on death to.
- It
must be the owner's intention that the account belongs to the
named beneficiary upon their death.
Individual Retirement Accounts
Funds in IRA or Keogh Accounts are eligible for separate insurance protection up to $100,000. These accounts are not shown in the insurance examples because they are subject to special deposit and withdrawal rules.
NCUA's regulatory changes may allow you to increase the maximum amount of your family's insured funds at Goldmark FCU. The charts below show typical family groups and their maximum coverage. The maximum amounts have been used because they most clearly demonstrate the total coverage available. The examples assume that the legal ownership requirements specified by NCUA have been met.
About These Examples
and NCUA
The NCUA cannot officially sanction and approve the above, because the examples, although generally accurate, are designed to simplify complex legal rules. These rules may only be fully understood in the statutory and regulatory context in which they were written.
|
| How Husband and Wife May Have Insured Accounts Totaling $600,000 |
| Individual Accounts | Husband
Wife | $100,000
$100,000 |
| Joint Accounts | | Husband and Wife | $200,000 | | Revocable Trusts | | Husband as Trustee for Wife | $100,000 | | Wife as Trustee for Husband | $100,000 |
| Total
Coverage |
$600,000 |
How a Grandparent and Two Grandchildren May Have Insured Accounts Totaling $1,000,000 |
Individual Accounts
| | Grandparent |
$100,000 |
| Grandchild Number One | $100,000 | | Grandchild Number Two | $100,000 | | Joint Accounts | | Grandparent and Grandchild Number One | $100,000 | | Grandparent and Grandchild Number Two | $100,000 | | Child Number One and Child Number Two | $100,000 | | Revocable Trust Accounts | | Grandparent as Trustee for Grandchild Number One | $100,000 | | Grandparent as Trustee for Grandchild Number Two | $100,000 | | Grandchild Number One as Trustee for Grandchild Number Two | $100,000 | | Grandchild Number Two as Trustee for Grandchild Number One | $100,000 |
|
Total
Coverage |
$1,000,000 | The same grouping of insured accounts can be arranged for a parent and two children, instead of for a
grandparent and two grandchildren. |
How Husband, Wife and Two Children May Have Insured Accounts Totaling $2,000,000 |
| Individual Accounts | | Husband | $100,000 | | Wife | $100,000 | | Child Number One | $100,000 | | Child Number Two | $100,000 | | Joint Accounts | | Husband and Wife | $100,000 | | Husband and Child Number One | $100,000 | | Wife and Child Number Two | $100,000 | | Child Number One and Child Number Two | $100,000 | | Revocable Trust Accounts | | Husband as Trustee for Wife | $100,000 | | Husband as Trustee for Child Number One | $100,000 | | Husband as Trustee for Child Number Two | $100,000 | | Wife as Trustee for Husband | $100,000 | | Wife as Trustee for Child Number One | $100,000 | | Wife as Trustee for Child Number Two | $100,000 | | Child Number One as Trustee for Child Number Two | $100,000 | | Child Number Two as Trustee for Child Number One | $100,000 | | Child Number One as Trustee for Father | $100,000 | | Child Number One as Trustee for Mother | $100,000 | | Child Number Two as Trustee for Father | $100,000 | | Child Number Two as Trustee for Mother | $$100,000 | | $2,000,000 |
| How a Husband, Wife and One Child May Have Insured Accounts Totaling $1,200,000 |
| Individual Accounts | | Husband | $100,000 | | Wife | $100,000 | | Child | $100,000 | | Joint Accounts | | Husband and Wife | $100,000 | | Husband and Child | $100,000 | | Wife and Child | $100,000 | | Revocable Trusts | | Husband as Trustee for Wife | $100,000 | | Husband as Trustee for Child | $100,000 | | Wife as Trustee for Husband | $100,000 | | Wife as Trustee for Child | $100,000 | | Child as Trustee for Father | $100,000 | | Child as Trustee for Mother | $100,000 |
|
Total
Coverage |
$1,200,000 |
How Grandfather, Grandmother and Grandchild May Have Insured Accounts Totaling $1,000,000 |
| Individual Accounts | | Grandfather | $100,000 | | Grandmother | $100,000 | | Grandchild | $100,000 | | Joint Accounts | | Grandfather and Grandmother | $100,000 | | Grandfather and Grandchild | $100,000 | | Grandmother and Grandchild | $100,000 | | Revocable Trust Accounts | | Grandfather as Trustee for Grandmother | $100,000 | | Grandfather as Trustee for Grandchild | $100,000 | | Grandmother as Trustee for Grandfather | $100,000 | | Grandmother as Trustee for Grandchild | $100,000 | | $1,000,000 |
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