Whew! Share Insurance extended to 2013

Okay, maybe you aren't as excited about the news that increased deposit insurance at both banks and credit unions will continue at least through December 31, 2013. But this is great news!

Back in October 2008 Deposit Insurance was raised for both the FDIC and NCUA temporarily and set to expire December 31, 2009. The extension is part of The Helping Families Save Their Homes Act of 2009, signed into law May 20, 2009. The action continues the increase from $100,000 to $250,000 on member share accounts. This isn't just good news it is big news since the $100,000 amount was set way back in the 1970's.

In my September post entitled Is your money safe? PART 2 I run through the NCUA's insurance estimator to give an example of how your actual insured deposit amount could be even higher than the $250,000. You can run your own estimates by using the NCUA share insurance estimator located on the website. If you haven't looked at this estimator, you should. Doing so could help you sleep a bit better.

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.