Maine Savings & Insurance Info
In 2010, a law was signed making the $250,000 insurance on all savings accounts at credit unions permanent. All accounts at federally-insured credit unions (all Maine credit unions are federally-insured) are insured by the National Credit Union Administration, a U.S. Government agency.
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The shares (savings) in credit unions are insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of the National Credit Union Administration (NCUA). Established by Congress in 1970 to insure member share (savings) accounts at federally insured credit unions, the NCUSIF is managed by NCUA under the direction of the three-person NCUA Board. Share (savings) insurance is similar to the deposit insurance protection offered by other financial institutions.
Here are some important facts to remember about share (savings) insurance:
- Not one penny of insured savings has ever been lost by a member of a federally insured credit union.
- As a member of an insured credit union, individual members do not pay directly for your share insurance protection. Each credit union pays into the NCUSIF a deposit, and an insurance assessment, based on the total amount of insured shares and deposits in the credit union. Insured credit unions are required to deposit and maintain one percent of their insured shares and deposits in the NCUSIF. The NCUSIF is backed by the full faith and credit of the United States government.
- Most properly established share accounts in federally insured credit unions are insured up to the Standard Maximum Share Insurance Amount (SMSIA), which, in 2010, was increased to $250,000 permanently on all. Recent legislation has increased the insurance coverage on certain retirement accounts, such as IRAs and Keoghs, up to $250,000. Generally, if a credit union member has more than one account in the same credit union, those accounts are added together and insured in the aggregate.