New NCUA Rules for Insurance Coverage

Permanent increase in basic NCUA insurance amount

A temporary increase from $100,000 to $250,000 was effective from October 3, 2008, through December 31, 2009. On May 20, 2009, the temporary increase was extended through December 31, 2013. And on July 22, 2010, the $250,000 federal insurance protection became permanent.

New Basic NCUA Share Insurance Limits for Common Ownership Types*

Individual Accounts (owned by one person) $250,000 per member
Joint Accounts (two or more persons) $250,000 per co-owner
Revocable Trust (ITF/POD) Accounts $250,000 per member per beneficiary subject to specific limitations and requirements
Corporation/Partnership/Organization Accounts $250,000

*For information on the requirements for these ownership categories, click on the NCUA Info section of E-Calculator

Note: IRAs and certain other retirement accounts will continue to be insured up to $250,000 after December 31, 2009, in accordance with the Deposit Insurance Reform Act of 2005.

New NCUA Rules for Revocable Trust Deposits

NCUA has adopted new rules that simplify how revocable trust deposits are insured. The new rules, which became effective on September 26, 2008, ensure that a revocable trust owner has at least as much coverage as he or she had under the former revocable trust account rules. The new rules change the calculation of coverage for revocable trust deposits in two significant ways:

First, the new rules provide that the owner of a revocable trust deposit is eligible to receive per-beneficiary coverage for any beneficiary named in the revocable trust, as long as the beneficiary is an individual, a charity or another nonprofit organization (recognized as such in the Internal Revenue Code).

Second, the new rules provide for a streamlined method of calculating insurance coverage depending on the number of beneficiaries who are entitled to receive the deposits when the trust owner (or owners) dies. Specifically, the rules provide that: