At Freedom Credit Union, the safety and security of your deposits are our top priority. That’s why we are proud to be federally insured by the National Credit Union Administration (NCUA). But what does that mean for you as a member? Let’s break it down.
What Is the NCUA?
The NCUA is a federal agency responsible for overseeing and regulating federal credit unions. It also manages the National Credit Union Share Insurance Fund (NCUSIF), which protects members’ deposits in both federal and most state-chartered credit unions.
While Freedom Credit Union operates under a state charter, the NCUA still insures your deposits. Here’s an easy way to distinguish: If we were federally chartered, our name would include “Federal” (e.g., Freedom Federal Credit Union).
How Does NCUA Insurance Compare to FDIC Insurance?
If you’re familiar with FDIC insurance for banks, NCUA insurance works in the same way—both are backed by the full faith and credit of the U.S. government. The primary difference is that FDIC covers banks, while NCUA covers credit unions. Both provide up to $250,000 in protection per depositor.
What Is Covered?
Each member’s deposits are insured up to $250,000 across all accounts of the same type at Freedom Credit Union. This coverage applies to:
- Individual accounts
- Joint accounts
- Trust accounts
- Retirement accounts (e.g., IRAs)
However, the $250,000 limit is not per account but per account type. For example, if you have multiple individual accounts, the combined balance across those accounts is insured up to $250,000.
Maximizing Your Coverage
If your balances exceed $250,000, there are ways to structure your accounts to increase your total coverage. For instance:
- Joint accounts: Each account holder is insured for their share of the funds, up to $250,000.
- Trust accounts with beneficiaries: Coverage can grow significantly. For example, a couple with four beneficiaries could have $2,000,000 in insured deposits: $250,000 x 2 account owners x 4 beneficiaries.
For businesses, the insurance coverage is capped at $250,000, regardless of the number of signers on the account. To fully protect higher balances, consider opening accounts at other financial institutions.
Need Help Calculating Coverage?
You can estimate your insurance coverage with the NCUA Insurance Estimator to ensure your funds are fully protected.
Financial Strength You Can Count On
While NCUA insurance protects your funds in the rare event of a credit union failure, Freedom Credit Union remains financially strong. With a delinquency rate of less than 1% and robust reserves, we are well-positioned to serve our members for years to come.
Rest assured, your deposits are safe with us. Thank you for trusting Freedom Credit Union!
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