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Structuring Your Deposits for Maximum Insured Protection

You may have heard that your deposits at White River Credit Union and other federally insured credit unions are insured by NCUA up to $250,000. That, we are happy to report, is true. But did you know that, with savvy structuring of your savings, a family of three could protect up to $2.5 million?

That’s also true. And in a moment, we’ll explain how. But first, five things you should know about insured deposits:

    1. No member of a federally insured credit union (such as WRCU) has ever lost a penny of insured deposits. So, the safest place for your cash is at the credit union!
    2. NCUA, or National Credit Union Administration, is an independent agency of the U.S. government, which means your insured deposits are backed by the federal government.
    3. Your savings, checking, certificate, IRA, and trust accounts can be insured by NCUA. But investment products such as mutual funds, annuities, and insurance cannot.
    4. Accounts you may have at other credit unions do not affect your NCUA insurance coverage at WRCU.
    5. Your money is automatically insured when deposited at WRCU. However, it’s a good idea to periodically review the structure of your deposits (like you’re doing right now!) to ensure that all your funds are adequately insured.

How you can insure up to $2.5 million

Structuring your family fortune to maximize NCUA insurance protection is easy once you understand the rules. For example:

  • Each account owner’s deposits are insured up to $250,000.
  • If you have a joint account, you could insure an additional $250,000, and your partner can insure $250,000, for a total of $500,000.
  • If you have an IRA, it’s separately insured for up to $250,000.
  • If you have a trust account, it’s separately protected for another $250,000.

All those exceptions to the “insured to $250,000” promise can really add up!

Do your homework

Confused? Don’t worry. Check out the NCUA “Your insured funds” brochure. It’s packed with dozens of examples and rules for structuring your deposits to maximize federal insurance. The possibilities are almost endless!

Or try the NCUA’s share insurance estimator (“shares” is credit union talk for money) to run your calculations and check if your deposits are adequately insured.

Are business accounts insured?

Yes, business accounts are federally insured by NCUA up to $250,000.

However, any personal funds that the owner keeps in the business account will count toward the $250,000 limit of the business. If the owner puts that money in a separate, personal account, then it will not be combined with the business and both accounts will be federally insured for up to $250,000.

Contact WRCU for Assistance

Is it worth the time to review how your money is structured at WRCU or other financial institutions? We think so. Call or text us at (360) 825-4833 or visit our branch in Downtown Enumclaw to find help.

While banks and credit unions rarely fail — and regulators have faithfully protected depositors from losses — it’s ultimately your responsibility to decide how and where to invest your money. WRCU employees are happy to help you review and determine how to maximize NCUA insurance protection for your money, but the final decision will always be yours.

© 2020 White River Credit Union