Rhode Island Credit Union assures you that we remain a financially sound and strong financial institution and the protection of your deposits is of the utmost importance to us. Our mortgage lending practices are conservative and we never participated in the subprime mortgage lending business, therefore, we have avoided delinquent mortgages or foreclosed properties.
Your shares in Rhode Island Credit Union are insured by the National Credit Union Share Insurance Fund (NCUSIF), a federal fund 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 is $250,000 as of October 2008. Your share insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation (FDIC).
The Emergency Economic Stabilization Act of 2008, signed into law on October 3, 2008, increased the insurance coverage on all accounts up to $250,000 through December 31, 2009. The Helping Families Save Their Homes Act of 2009, signed into law May 20, 2009, includes a provision extending $250,000 share insurance coverage provided by the National Credit Union Share Insurance Fund through December 31, 2013.
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. There are exceptions, though. You may obtain additional separate coverage on multiple accounts, but only if you have different ownership interests or rights in different types of accounts and you properly complete account forms and applications. For example, if you have a regular share account and an Individual Retirement Account (IRA) at the same credit union, the regular share account is insured up to $250,000 and the IRA is separately insured up to $250,000. However, if you have a regular share account, a certificate of deposit, and a checking account, all in your own name, you will not have additional coverage. Those accounts will be added together and insured up to $250,000 as your individual account.
Coverdell Education Saving Accounts, formerly education IRAs, are insured as irrevocable trust accounts and will be added to a member’s other irrevocable trust accounts and insured up to the SMSIA. Roth IRAs will be added together with traditional IRAs and insured up to $250,000.
A co-owner’s interest in all joint accounts in the same credit union will be added together and insured up to $250,000.
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, you do not pay directly for your share insurance protection. Credit unions pay a deposit into the NCUSIF 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.
Please feel free to contact us with any questions about the safety of your deposits or you may contact an insurance expert at the National Credit Union Administration call center at 1.800.755.1030 ext. 1 from 8:00 am – 6:30 pm (Eastern Time).