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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 |
$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 |
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.
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.