What Can DCU Save You?

About NCUA Insurance

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About NCUA Insurance

Learn...

  1. About coverage for individual and joint accounts
  2. About coverage on revocable trust accounts
  3. About coverage on IRAs
  4. How to maximize your coverage

About NCUA Insurance

Your DCU accounts are insured up to $250,000 per person by the National Credit Union Share Insurance Fund (NCUSIF). Individual Retirement Accounts (IRA) are insured separately up to $250,000. 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.

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 $250,000.

For a detailed explanation of insurance coverage or to estimate your share insurance go to NCUA's Share Insurance Estimator. You can also read NCUA's Your Insured Funds brochure.

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 $250,000. 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 $250,000 coverage for their "share" of the funds in jointly owned accounts. For example, if two Joint Owners have $500,000 in their jointly owned accounts at an institution, the full amount is covered – $250,000 for each owner. If there are three Joint Owners, the maximum coverage is $750,000 – $250,000 for each joint owner.

Each individual is limited to $250,000 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 natural persons or a charitable organization or other non-profit entity under the Internal Revenue Code of 1986, the funds in the account are separately insured to $250,000 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:

  1. Beneficiaries must be specified in the account records.

  2. The title of the account (on system or paper work) must include a term such as in trust for or payable on death to.

  3. 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 $1,500,000
Individual Accounts – wife $250,000
Individual Accounts – husband $250,000
Joint Accounts – husband and wife $500,000
Revocable Trust – husband as trustee for wife $250,000
Revocable Trust – wife as trustee for husband $250,000
Total Coverage $1,500,000

 

How a Grandparent and Two Grandchildren May Have Insured Accounts Totaling $2,500,000
Individual Accounts – grandparent $250,000
Individual Accounts – grandchild one $250,000
Individual Accounts – grandchild two $250,000
Joint Accounts – grandparent and grandchild one $250,000
Joint Accounts – grandparent and grandchild two $250,000
Joint Accounts – child one and child two $250,000
Revocable Trust Accounts – grandparent as trustee for grandchild one $250,000
Revocable Trust Accounts – grandparent as trustee for grandchild two $250,000
Revocable Trust Accounts – grandchild one as trustee for grandchild two $250,000
Revocable Trust Accounts – grandchild two as trustee for grandchild one $250,000
Total Coverage $2,500,000

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 $5,000,000
Individual Accounts – husband $250,000
Individual Accounts – wife $250,000
Individual Accounts – child one $250,000
Individual Accounts – child two $250,000
Joint Accounts – husband and wife $250,000
Joint Accounts – husband and child one $250,000
Joint Accounts – wife and child two $250,000
Joint Accounts – child one and child two $250,000
Revocable Trust Accounts – husband as trustee for wife $250,000
Revocable Trust Accounts – husband as trustee for child one $250,000
Revocable Trust Accounts – husband as trustee for child two $250,000
Revocable Trust Accounts – wife as trustee for husband $250,000
Revocable Trust Accounts – wife as trustee for child one $250,000
Revocable Trust Accounts – wife as trustee for child two $250,000
Revocable Trust Accounts – child one as trustee for child two $250,000
Revocable Trust Accounts – child two as trustee for child one $250,000
Revocable Trust Accounts – child one as trustee for father $250,000
Revocable Trust Accounts – child one as trustee for mother $250,000
Revocable Trust Accounts – child two as trustee for father $250,000
Revocable Trust Accounts – child two as trustee for mother $250,000
Total Coverage $5,000,000

 

How a Husband, Wife and One Child May Have Insured Accounts Totaling $3,000,000
Individual Accounts – husband $250,000
Individual Accounts – wife $250,000
Individual Accounts – child $250,000
Joint Accounts – husband and wife $250,000
Joint Accounts – husband and child $250,000
Joint Accounts – wife and child $250,000
Revocable Trusts – husband as trustee for wife $250,000
Revocable Trusts – husband as trustee for child $250,000
Revocable Trusts – wife as trustee for husband $250,000
Revocable Trusts – wife as trustee for child $250,000
Revocable Trusts – child as trustee for father $250,000
Revocable Trusts – child as trustee for mother $250,000
Total Coverage $3,000,000

 

How Grandfather, Grandmother, and Grandchild May Have Insured Accounts Totaling $2,500,000
Individual Accounts – Grandfather $250,000
Individual Accounts – grandmother $250,000
Individual Accounts – grandchild $250,000
Joint Accounts – grandfather and grandmother $250,000
Joint Accounts – grandfather and grandchild $250,000
Joint Accounts – grandmother and grandchild $250,000
Revocable Trust Accounts – grandfather as trustee for grandmother $250,000
Revocable Trust Accounts – grandfather as trustee for grandchild $250,000
Revocable Trust Accounts – grandmother as trustee for grandfather $250,000
Revocable Trust Accounts – grandmother as trustee for grandchild $250,000
Total Coverage $2,500,000

 

Digital Federal Credit Union

220 Donald Lynch Boulevard

PO Box 9130

Marlborough, MA 01752-9130

508.263.6700  |  800.328.8797

ABA Routing Number: 211391825

    

Federally Insured by NCUA

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