About NCUA Insurance on Your Credit Union Savings
Your DCU 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 $250,000 (raised from $100,000 on April 1, 2006). 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.
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.
For a detailed explanation of insurance coverage or to estimate your share insurance go to NCUA's Share Insurance Estimator.
Individual Accounts
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 do not count toward this total.
Joint Accounts
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.
Revocable Trust Accounts
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 $250,000. These accounts are not shown in the insurance examples because they are subject to special deposit and withdrawal rules.
Maximizing Your Coverage
NCUA's regulatory changes may allow you to increase the maximum amount of your family's insured funds at DCU. 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 or wife | $100,000 |
| Joint Accounts – husband and wife | $200,000 |
| Revocable Trust – husband as trustee for wife | $100,000 |
| Revocable Trust – 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 |
| Individual Accounts – grandchild one | $100,000 |
| Individual Accounts – grandchild two | $100,000 |
| Joint Accounts – grandparent and grandchild one | $100,000 |
| Joint Accounts – grandparent and grandchild two | $100,000 |
| Joint Accounts – child one and child two | $100,000 |
| Revocable Trust Accounts – grandparent as trustee for grandchild one | $100,000 |
| Revocable Trust Accounts – grandparent as trustee for grandchild two | $100,000 |
| Revocable Trust Accounts – grandchild one as trustee for grandchild two | $100,000 |
| Revocable Trust Accounts – grandchild two as trustee for grandchild 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 |
| Individual Accounts – wife | $100,000 |
| Individual Accounts – child one | $100,000 |
| Individual Accounts – child two | $100,000 |
| Joint Accounts – husband and wife | $100,000 |
| Joint Accounts – husband and child one | $100,000 |
| Joint Accounts – wife and child two | $100,000 |
| Joint Accounts – child one and child two | $100,000 |
| Revocable Trust Accounts – husband as trustee for wife | $100,000 |
| Revocable Trust Accounts – husband as trustee for child one | $100,000 |
| Revocable Trust Accounts – husband as trustee for child two | $100,000 |
| Revocable Trust Accounts – wife as trustee for husband | $100,000 |
| Revocable Trust Accounts – wife as trustee for child one | $100,000 |
| Revocable Trust Accounts – wife as trustee for child two | $100,000 |
| Revocable Trust Accounts – child one as trustee for child two | $100,000 |
| Revocable Trust Accounts – child two as trustee for child one | $100,000 |
| Revocable Trust Accounts – child one as trustee for father | $100,000 |
| Revocable Trust Accounts – child one as trustee for mother | $100,000 |
| Revocable Trust Accounts – child two as trustee for father | $100,000 |
| Revocable Trust Accounts – child two as trustee for mother | $100,000 |
| Total Coverage | $2,000,000 |
| How a Husband, Wife and One Child May Have Insured Accounts Totaling $1,200,000 | |
|---|---|
| Individual Accounts – husband | $100,000 |
| Individual Accounts – wife | $100,000 |
| Individual Accounts – child | $100,000 |
| Joint Accounts – husband and wife | $100,000 |
| Joint Accounts – husband and child | $100,000 |
| Joint Accounts – wife and child | $100,000 |
| Revocable Trusts – husband as trustee for wife | $100,000 |
| Revocable Trusts – husband as trustee for child | $100,000 |
| Revocable Trusts – wife as trustee for husband | $100,000 |
| Revocable Trusts – wife as trustee for child | $100,000 |
| Revocable Trusts – child as trustee for father | $100,000 |
| Revocable Trusts – 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 |
| Individual Accounts – grandmother | $100,000 |
| Individual Accounts – grandchild | $100,000 |
| Joint Accounts – grandfather and grandmother | $100,000 |
| Joint Accounts – grandfather and grandchild | $100,000 |
| Joint Accounts – grandmother and grandchild | $100,000 |
| Revocable Trust Accounts – grandfather as trustee for grandmother | $100,000 |
| Revocable Trust Accounts – grandfather as trustee for grandchild | $100,000 |
| Revocable Trust Accounts – grandmother as trustee for grandfather | $100,000 |
| Revocable Trust Accounts – grandmother as trustee for grandchild | $100,000 |
| Total Coverage | $1,000,000 |
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Digital Federal Credit Union 220 Donald Lynch Boulevard PO Box 9130 Marlborough, MA 01752-9130 508.263.6700 • 800.328.8797 |
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