Wednesday, September 17, 2008

Is your money safe? PART 2

Awhile back I explained that your credit union deposits are insured by the NCUA, just as any bank deposits are insured by the FDIC. Now with more banks failing some people are starting to wonder if the FDIC can really cover their deposits. And you can't help but wonder if the situtation will spread to credit unions.

As for the FDIC, they continue to assure consumers that their funds are safe. They're updated website devotes a section to deposit insurance. Likewise NCUA has also added more about deposit insurance or as it's known in credit union speak "share insurance". The new share insurance estimator tool on the NCUA site is designed to give you a clearer picture of what funds are insured and up to what amount.

I used the calculator and put in some fictional numbers that included joint accounts, an IRA and a Trust. I set the combined balances higher than the $100,000 insurance and happily saw that my scenario was completely insured.
I encourage you to visit the NCUSIF estimator and plug in your own accounts, even just for your own peace of mind. At the end of the tool you can print results if you like.

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