How Are Your Funds Insured?
Connections Credit Union is a state chartered and federally insured financial institution. Your Connections Credit Union member deposits are insured through the National Credit Union Share Insurance Fund (NCUSIF) up to $250,000.00. The fund is under the direction of the government agency, National Credit Union Administration (NCUA) and is backed by the full faith and credit of the U.S. Government.
We encourage our members to educate themselves on how share insurance works. For further information, please visit the National Credit Union Administration’s Share Insurance FAQ.
Insurance Coverage Examples
Single Ownership Accounts:
All funds under an individual’s SSN (could be one or multiple accounts) will be aggregated together for insurance up to $250,000.00. If an individual has a regular share, checking account, and certificate all in the same name without a named beneficiary, these accounts will be added together for a coverage up to $250,000.00.
If an individual has a regular share account and an IRA, their coverage would be up to $500,000.00 as an IRA has a separate insured amount of up to $250,000.00.
Joint Accounts:
The interest of a joint owner in all accounts is insured up to $250,000.00. This coverage is separate from any individual account the person may hold.
Example 1:
A husband and wife have a joint account. Each owner of the account has coverage up to $250,000.00.
Example 2:
A husband and wife have a joint account, as well as they each hold an individual account. Coverage for these three accounts are separately insured.
Husband’s individual account insured up to $250,000.00
Wife’s individual account insured up to $250,000.00
Joint account insured up to $250,000.00 for each owner
Multiple Accounts and Ownership:
As stated earlier, individual accounts are covered separately from joint accounts. Joint accounts are aggregated together for coverage.
| Account Type | Account # | Owner(s) | Account Balance |
|---|---|---|---|
| Individual | 1 | A | $250,000 |
| 2 | B | $250,000 | |
| 3 | C | $250,000 | |
| Joint | 4 | A and B | $240,000 |
| 5 | A and C | $240,000 | |
| 6 | B and C | $240,000 | |
| 7 | A, B, and C | $240,000 |
Accounts 1, 2, and 3 are each separately insured for $250,000.00 because they are individual accounts. The interests of the co-owners of each joint account are aggregated together for coverage. A’s interest in accounts 4, 5, and 7 are added together totaling $320,000.00 of which $250,000.00 is covered. The same would apply to joint owners B and C.
Revocable Trust Coverage (Payable-On-Death Accounts):
Beneficiaries of POD accounts receive up to $250,000.00 in coverage for each beneficiary named (five or fewer beneficiaries). The account owner names two PODs on their account, the total coverage would be $500,000.00.
Business Accounts:
Funds deposited into a business account are added together and insured up to $250,000.00. Business A has three separate accounts, because all three accounts are the property of Business A, they would be added together and insured up to $250,000.00.