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How Much Insurance Coverage is Provided by NCUA?
NCUA insures share deposits up to at least $250,000. That is
the amount of insurance that one member gets when they are the
only listed owner of an account. For joint accounts the amount
of insurance is $500,000. For Individual Retirement Accounts
the amount of insurance is also $250,000. So a typical
husband and wife can have $500,000 either individually or
jointly, then they can also have $250,000 each in their own
respective retirement accounts for a total insured amount of
$1,000,000!
How is NCUA's coverage different from that of FDIC?
There is very little difference between NCUA and FDIC
insurance coverages.
FDIC insures bank deposit while NCUA insures all federal credit
unions and most state chartered credit unions. Piedmont Credit
Union is one of the many state chartered credit union insured by
NCUA.
What are the chances that I will have to use my NCUA Share
Deposit Insurance?
Our credit union is in very good financial shape at this
time. Our shares have been growing steadily this year. We
still offer good rates for savings and certificates. In
fact we’ve paid 12% more in dividends to members this year than
last. The credit union is well capitalized. All of the credit
union’s investments are in federally insured accounts. We are
not permitted to make risky investments with the money our
members have on deposit with us. We also are not permitted to
invest in the stock market.
Loans have also grown steadily from what they were last
year. Our charged off loans have remained about the same as
they always have. The credit union has stayed completely out of
the sub-prime mortgage lending scenario. The credit union’s net
income has been very strong this year which should ensure that
we can weather an even worse downturn in the financial world
than there is today.
It is simply inconceivable that Piedmont Credit Union would
fail in the foreseeable future.
Below is a video from Dan Mica, the President of the
Credit Union National Association. He talks about the
safety and soundness of America's credit unions. He goes over
NCUA insurance coverage. He speaks of how, by staying out of
sub-prime lending, credit unions have not contributed to the
financial troubles of today. Credit unions and Piedmont Credit
Union in particular, really are one of the safest places for
your money.
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