Your Insured Funds
The shares you have on deposit at SeaComm FCU are insured by the
National Credit Union Share Insurance Fund (NCUSIF) or the
Fund, an arm of NCUA. Established by Congress in 1970 to insure
member share accounts at federally insured credit unions,
the Fund is managed by NCUA under the direction of the three-person
NCUA Board. Your share insurance is similar to the deposit
insurance protection offered by the Federal Deposit Insurance
Not one penny of insured savings has ever been lost by a member
of a federally insured credit union. The federal insurance
fund has several programs to help insured credit unions which
may be experiencing problems, and liquidations or failures
are usually done only as a last resort. If a federally insured
credit union does fail, however, the NCUSIF will make any
necessary payouts to the credit union's members. These payouts
are usually done within 2 days from the time the credit union
closes its doors.
Insured credit unions are required to deposit and maintain one percent
of their insured shares and deposits in the NCUSIF. The Fund
is currently at the strongest and best reserved level in its
history. Historically, deposit insurance funds strive for
a ratio of equity to insured savings of at least one percent.
The NCUSIF ration of equity to insure shares and deposits
is normally 1.25 percent to 1.30 percent.
As a member of SeaComm Federal Credit Union, you do not pay directly
for your share insurance protection. SeaComm pays into the
NCUSIF a deposit, and an insurance assessment, based on the
total amount of insured shares and deposit in the credit union.
The basic insured amount for a credit union member under current
law is $100,000. Share accounts maintained in different rights
or capacities, or forms of ownership, may each be separately
insured up to $100,000. Thus, a member may hold or have an
interest in more than one separately insured share account
in the same insured credit union. The NCUA Insurance booklet,
available at all of our offices, gives a more detailed explanation
of insurance coverage.