Notice of Changes in Temporary NCUA Insurance Coverage for Transaction Accounts
All funds in a ‘‘noninterest-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 ‘‘noninterest-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.
Your Credit Union Funds Are Safe
Due to recent events, some members have expressed concern about the financial stability of FORUM and have asked whether their funds are insured. We want to assure our members that FORUM is financially sound and that members' funds are insured by the National Credit Union Administration.
Federal Deposit Insurance Increase
(New!) $250,000 NCUA Share Insurance Protection is Now Permanent
- President Barack Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act on July 22, 2010. Included in this sweeping legislation are provisions making permanent the current $250,000 maximum federal deposit insurance level, which had been temporary until December 31, 2013.
- Deposit insurance at federally insured credit unions through the National Credit Union Administration has the full backing of the United States Government.
- The already existing $250,000 federal deposit insurance amount for retirement accounts remains the same.
- Federal deposit insurance applies in a number of ways. For example, each individual is insured up to $250,000 for accounts titled in his or her name only. Additionally, a husband and wife each have another $250,000 in coverage on accounts titled jointly, using both of their names.
Your Credit Union Is Financially Sound
FORUM’s capital ratio and net worth ratio continue to be at the levels expected which are considerably above the regulator required minimums with current capital over $100 million.
As a financial cooperative, FORUM believes that deposits are best “invested” in the form of making loans to other members of the cooperative. Because of this philosophy, deposits are not invested in stocks, mutual funds, or money markets. FORUM does have a very small amount of deposits invested in seasoned federal agency securities that are performing well and have been on our books for several years. Any other surplus funds FORUM has remain in our overnight settlement accounts at Members United Corporate Federal Credit Union.
Read a message from our CEO regarding FORUM's financial stability - June 12, 2009
Read a message from our CEO regarding corporate credit unions - March 22, 2009
Read a message from our CEO regarding the safety of your funds - August 1, 2008
Your Funds Are Insured
Click the video screen above to hear about
federal insurance for your savings at credit
The shares (deposits) in credit unions are insured by the National Credit Union Share Insurance Fund (NCUSIF), where not one penny of insured savings has ever been lost by a member of a federally insured credit union. This fund is backed by the full faith and credit of the United States government. Established by Congress in 1970 to insure member share accounts at federally insured credit unions, the NCUSIF is managed by the National Credit Union Administration (NCUA).
Insurance is at least $250,000 through NCUSIF.
Traditional and Roth IRAs and KEOGH retirement accounts are insured up to $250,000 by the NCUSIF.
There is even more share insurance for joint ownership accounts and certain, qualified, named beneficiaries of accounts.
The NCUA fund is secured by the U.S. Treasury. In the unlikely event that this insurance fund would be paid out across the country the U.S. Treasury is required by federal law to discontinue funding other federal programs in order to pay all depositors the full amount of money they have on deposit with their credit union.
Contact NCUA's Consumer Assistance Center between 8 a.m. and 6 p.m. (EDT) at 800.755.1030, press 1 for share insurance questions.
Credit Unions Are Different
With the current focus on financial institutions, it is important to understand the fundamental differences between credit unions and banks. Below are a few points explaining the principles credit unions are founded on.
- Credit Unions are financial cooperatives owned by members rather than shareholders.
- Profits are returned to members through higher savings rates and lower loan rates.
- Credit Unions are run by a volunteer, rather than paid, board of directors.
- Because they are not publicly traded, credit unions do not rely on the stock market.
- Credit Unions have sound lending practices and service oriented policies.