NCUA Share Insurance: What’s Covered and What Isn’t - VFCU

NCUA Share Insurance: What’s Covered and What Isn’t

The National Credit Union Administration (NCUA) is composed of office members who serve and oversee credit union relations nationally. Three members hold full-time positions, serving six-year terms appointed by the President of the United States and confirmed by the Senate and titled the Agency Leadership. The association is responsible for upholding and maintaining rules and regulations of all credit unions to better serve members. An immediate and important concern for members is whether or not their money deposits are insured. In fact they are insured by the National Credit Union Share Insurance Fund (NCUSIF).

What The NCUSIF Covers

According to the NCUA, the insurance fund covers all sorts of deposits received at federally-insured credit unions. Types include:

  • Money deposits
  • Deposits in a share draft account
  • Share savings account
  • Time deposits

Every dollar is insured with the inclusion of principal and any accrued interest. A depositor may qualify for more than the $250,000 government limit, if he or she is depositing multiple deposits and if requirements and rules concerning ownership are met. Members’ deposits are secured and are properly handled if any mishaps occur.

What The NCUSIF Doesn’t Cover

Federally-insured credit unions sell different investments and products to members for their convenience, however, not all are insured by the NCUSIF. These include:

  • Mutual funds
  • Life insurance policies
  • Stocks
  • Annuities
  • Bonds
  • Municipal securities

Credit unions who sell these financial options are required to notify members that the options are subject to investment risks and are not guaranteed by the credit union, aside from informing members that they are not covered by insurance.

Contact Us

For more information regarding NCUA insurance coverage of deposits, contact the Brownsville credit union branch of Valley Federal Credit Union at (956) 546-3108 or the Harlingen branch at (956) 425-5668.