Share Insurance
Your money is safe with GenFed Financial Services FCU! Members' deposits with GenFed FCU are insured up to $250,000 by the NCUA. Different types of account ownership may increase the amount covered by the National Credit Union Share Insurance Fund (an arm of the NCUA).
Share Insurance Protects Your Savings
Credit unions are safe, stable, and sound in the midst of an otherwise uncertain financial services market recently dominated by alarming headlines. These headlines have prompted questions among many credit union members about how credit union deposits are protected. We'd like to remind you that your deposits are protected up to at least $250,000, and in many cases more, and that credit unions are secure, strong, and ready to serve.
Safeguarding your hard-earned money is critical. That's why GenFed has federal share insurance, administered by an independent government agency, the National Credit Union Administration (NCUA). The National Credit Union Share Insurance Fund (NCUSIF) protects aggregate savings up to at least $250,000 in your regular share savings, certificates, and share draft/checking accounts. The coverage for individual retirement accounts (IRAs) is $250,000.
GenFed has also gone the extra mile and purchased additional insurance for our members. An additional $250,000 in deposits is insured by Excess Share Insurance, a private insurance company.
Something else about share insurance: It separately insures individual and joint accounts. For example, say you have an individual account containing $250,000, and a joint account with your spouse containing $250,000. Each account is insured separately for a total coverage of $500,000.
GenFed Federal Credit Union has been virtually unaffected by the current economic crisis by being a responsible lender and not giving loans to those who cannot afford more debt or cannot afford a changing payment on their mortgage. GenFed has not approved loans that were not in the best interest of the borrower just to get a loan on the books. Therefore, our ability to serve members is in great shape.
So how do you know we're federally insured? All federally insured credit unions--like yours--must post the official NCUA insurance sign in their offices. Call your branch for literature discussing the insurance policies GenFed has available to protect your deposits.
GenFed is a member-owned, not-for-profit cooperative. We don't make business decisions that benefit the bottom line but hurt the member. Frankly, it makes us your best source for all your financial needs across the board. After 70 years of service, GenFed has always and will continue to offer only responsible programs.
The Mica Minute: CUs Are Safe and Sound
WASHINGTON (8/31/08)--The safety, soundness and strength of credit unions--backed by federal insurance--is outlined in Dan Mica's latest "Mica Minute" video, posted on the Internet, as well as on the Credit Union National Association (CUNA) website.
In the video, Mica explains how recent news reports on the failure of banks urged consumers to be sure to save their money in "banks insured by the FDIC."
Mica points out that those reports left out the fact that virtually all credit unions are also backed by federal insurance.
Click here to view the video.
- The NCUSIF is administered by the National Credit Union Administration (NCUA), an agency of the federal government. To determine insurance coverage, see the NCUA’s insurance estimator at: http://webapps.ncua.gov/ins/
- For more information on federal share insurance, see the NCUA brochure “Your Insured Funds,” available at the link here: http://www.ncua.gov/Publications/brochures/insured_funds/funds.pdf
GenFed Protects Your Accounts
In the wake of recent financial bailouts and questions over the safety of financial instruments, there's been considerable confusion over the difference between money market share accounts at the credit union, and money market mutual funds. The most important difference: One is insured and one isn't.
Money that credit union members place in money market share accounts is backed by the U.S. government through the National Credit Union Share Insurance Fund (NCUSIF). It insures funds up to at least $250,000 for a standard account, or $250,000 if the money is specifically in a retirement account.
In contrast, the money in a money market mutual fund does not carry insurance. The recent Treasury Department proposal, however, would temporarily guarantee money market mutual funds for a year to boost investor confidence.
"The Treasury Department's proposal is currently written to guarantee only those funds deposited on or before September 19," warns Steve Rick, senior economist, Credit Union National Association, Madison, Wisconsin.
"Given recent volatility in the market, it makes sense to place any additional savings in an insured money market share account at depository institutions such as a credit union because of the share insurance up to at least $250,000," Rick said.
Other important points to remember about these financial instruments include:
- Money market share accounts offer higher yields than traditional savings accounts, but usually have higher minimum balance requirements than share savings accounts, and money market share accounts typically allow limited transactions.
- A money market share account is just that--a money market share account at a credit union, whereas a money market mutual fund is a collection of short-term debt investments held by that mutual fund.
- Despite the associated risks of uninsured money market mutual funds, they're important savings and investment vehicles for many consumers.
GenFed is well aware of the turmoil in the markets. Rest assured that your credit union never engaged in the risky activities that are threatening the very viability of so many of the big banks. Our capital levels are almost double the required amounts and we received the highest regulatory rating possible. We make safe, sound loans to members like yourself and have plenty of liquidity to handle all of your financial needs.
To view GenFed’s most recent Statement of Financial Condition, contact your branch or visit www.ncua.gov, click ‘Credit Union Data’, then ‘Find a Credit Union’ and search for GenFed.
