Thursday, December 3, 2009

NCUA Federal Deposit Insurance

In light of recent concerns with of other credit unions in Nevada, we wanted to let you know about the difference between federal and private deposit insurance. But first, there is no need for alarm. Nevada Federal is safe, strong and stable. We have over $74 million in capital reserves (more than 9% net worth), which provides a very strong cushion to overcome difficult economic conditions.

Your money is completely safe at Nevada Federal Credit Union. The federal government insures every individual account at Nevada Federal up to at least $250,000.00. Retirement accounts are insured, separate from other accounts, up to additional $250,000. Not one federal credit union member has ever lost a dime of their money.

The National Credit Union Administration (NCUA), a federal government agency that charters and supervises federal credit unions such as Nevada Federal, insures your deposits up to $250,000 per individual account. This insurance is backed by the full faith and credit of the U.S. Treasury. Federal insurance:

  • Is backed by the U.S. Government
  • Is federally regulated with congressional oversight
  • Insures nearly 90 million account holders in all federal credit unions and the majority of state-chartered credit unions

Some other Nevada credit unions offer private insurance to their members. Private insurance is managed by a group of credit unions that own the insurance company and offer the coverage to themselves. The private insurance company is not regulated by the U.S. Government nor the NCUA. Private insurance has neither federal oversight nor federal guarantee. Private insurance:

  • Is NOT backed by the U.S. Government
  • Is NOT federally regulated with congressional oversight
  • Insures only a few credit unions nationwide in a handful of states

Again, please rest assured your money is completely safe, secure and federally insured at Nevada Federal. Please contact us or speak to a local Financial Service Representative if you have any questions.

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