NCUA Share Insurance
Higher Coverage Limits Permanently Extended
The "Helping Families Save Their Homes Act of 2009" extends the time frame for the temporary increase to the standard maximum share insurance amount (SMSIA). The SMSIA increase from $100,000 to $250,000 is now effective indefinitely.
The higher SMSIA applies to all types of share accounts, including regular shares, share drafts, money market accounts, and share certificates.
Notice of Changes in Temporary NCUA Insurance Coverage for Transaction Accounts
All funds in a "non interest-bearing transaction account" are insured in full by the National Credit Union Administration through December 31, 2012.
This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to members under the NCUA's general share insurance rules.
The term "non interest-bearing transaction account" includes a traditional share draft account (or demand deposit account) on which the insured credit union pays no interest or dividend. It does not include any transaction account that may earn interest or dividends, a negotiable order of withdrawal (NOW) account, money market deposit account, and Interest on Lawyers Trust Account (IOLTA), even if share drafts may be drawn on the account.
For more information about temporary NCUA insurance coverage of transaction accounts, visit www.ncua.gov.