Listen to Lawrence – FDIC Protection Explanation – Part 3 – Federal Credit Unions

Dear clients and friends,

FDIC PART THREE

Of all the topics I’ve discussed in these emails, I remain amazed at the interest around FDIC insurance. I guess it reflects the general anxiety we all have over the economy and the consequent concern for the safety of our checking and savings accounts, CDs and money markets. Your interest is evidenced by the many questions and statements I am receiving. I will answer many of your questions in future LISTEN TO LAWRENCE emails, so keep your questions coming, but please be patient with my answers…I’ll get to them.

Nevertheless, I have to take a one day pause in discussing the eight categories of bank accounts that each qualify for their own $250,000 insurance. I wanted to address the first category, SINGLE ACCOUNTS, today, but I must first address several emails I received from my readers:

STATEMENT OF READER:

I also very much enjoy reading your emails and thank you for them. I am sure it makes your readers a little more at ease. Just as an FYI…..The same holds true for those that have their money in Federal Credit Unions which are insured by the NCUA (a Federal government agency as well) up to $250,000, the same as the FDIC.

FOLLOW UP STATEMENT OF SAME READER:

Lawrence, when you sent your first email I responded the same applies at federal credit unions backed by the NCUA, a Federal agency, the same as the FDIC but for credit unions. I was disappointed that you did not convey this to your email list readers. (A client of yours who banks at a Federal Credit Union.)

A QUESTION FROM ANOTHER READER:

Thank you for your timely updates on financial matters. Do Credit Unions come under the FDIC insurance, with the same conditions as banks? I’d appreciate you addressing this matter. Thank you.

MY RESPONSE:

Thank you for helping us all focus on credit unions as well as traditional banks. I appreciate your passion and I apologize for not including this point in my original emails, although the original question concerned banks.

Deposits at all federal credit unions and the vast majority of state-chartered credit unions are covered by National Credit Union Share Insurance Fund (NCUSIF) protection. Not one penny of insured savings has ever been lost by a member of a federally insured credit union.

Federally insured credit unions absolutely provide a safe place for you to save your money, with deposits insured up to at least $250,000 per individual depositor. The National Credit Union Administration (NCUA) is the independent agency that administers the NCUSIF. Like the FDIC’s Deposit Insurance Fund, the NCUSIF is a federal insurance fund backed by the full faith and credit of the United States government.

Also, like the FDIC, the NCUA’s protection is $250,000 PER ACCOUNT CATEGORY. The eight categories I introduced in my previous email for FDIC insurance apply in essentially the same manner for NCUA protection.

The next LISTEN TO LAWRENCE email will discuss SINGLE ACCOUNTS. We will then move on to JOINT ACCOUNTS, RETIREMENT ACCOUNTS, REVOCABLE TRUSTS AND OTHER ACCOUNTS WITH A BENEFICIARY, IRREVOCABLE TRUSTS….AND SO ON.

I hope this helps.

Please forward this information to your friends and relatives.

As always, please send me your questions. If you are thinking about it, others are probably too, so my answers will no doubt help you and many others.

Let’s stay connected.

LISTEN TO LAWRENCE

Stay safe!