Thiokol Elkton Federal Credit Union
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   Share Insurance Coverage

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The NCUA Board has increased share insurance limits to $250,000 for retirement accounts such as Traditional and Roth IRAs (Individual Retirement Accounts). Your regular share accounts remain federally insured to at least $250,000 and backed by the full faith and credit of the United States Government.

If you have more than one account at TEFCU, the accounts are added together and insured up to $250,000. However, there are exceptions. Share accounts maintained in different rights or capacities, or forms of ownership, may each be separately insured up to $250,000 and $250,000 for certain retirement accounts.

For example, a family of four may have up to $4.5 million in NCUSIF coverage:

Type of Account

Amount Insured

Individual Account of Husband

$250,000

Individual Account of Wife

$250,000

Individual Account of Child #1

$250,000

Individual Account of Child #2

$250,000

Joint Tenancy Account of Husband, Wife, and two children *

$1,000,000

Testamentary Revocable Trust Account with Husband as Trustee for Wife

$250,000

Testamentary Revocable Trust Account with Wife as Trustee for Husband

$250,000

Testamentary Revocable Trust Account with Husband as Trustee for Child #1

$250,000

Testamentary Revocable Trust Account with Wife as Trustee for Child #1

$250,000

Testamentary Revocable Trust Account with Husband as Trustee for Child #2

$250,000

Testamentary Revocable Trust Account with Wife as Trustee for Child #2

$250,000

Individual Retirement Account of Husband

$250,000

Individual Retirement Account of Wife

$250,000

Individual Retirement Account of Child #1

$250,000

Individual Retirement Account of Child #2

$250,000

Total Amount Insured:

$4.5 million

* Presuming no interest by any of the four parties in other joint accounts at TEFCU

As a member of TEFCU, you do not pay directly for your share insurance protection. TEFCU pays into the NCUSIF a deposit, and an insurance assessment, based on the total amount of insured shares and deposits in the credit union. Insured credit unions are required to deposit and maintain one percent of their insured shares and deposits in the NCUSIF.

This Share Insurance coverage is an extra measure of protection for your money in share savings, share draft/checking, money market, share certificate, trust funds, and retirement accounts. Having this coverage protects you in the case that TEFCU ever gets into financial difficulties and has to close. Not one penny of insured savings has ever been lost by a member of a federally insured credit union. The NCUSIF is backed by the full faith and credit of the United States government.

       Effective June 24, 2011:

NOTICE OF CHANGES IN TEMPORARY NCUA INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS

All funds in a “noninterest-bearing transaction account” are insured in full by the National Credit Union Administration through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to members under the NCUA's general share insurance rules.

The term “noninterest-bearing transaction account” includes a traditional share draft account (or demand deposit account) on which the insured credit union pays no interest or dividend. It does not include any transaction account that may earn interest or dividends, a negotiable order of withdrawal (“NOW”) account, money-market deposit account, and Interest on Lawyers Trust Account (“IOLTA”), even if share drafts may be drawn on the account. For more information about temporary NCUA insurance coverage of transaction accounts, visit www.ncua.gov.

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