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Share Insurance at Vantria FCU

The National Credit Union Administration (NCUA) through the National Credit Union Share Insurance Fund (NCUSIF) provides share insurance on members’ funds deposited in VFCU. The NCUA is an independent agency of the United States Government, responsible for the oversight of federal credit unions. As a member, you do not pay for share insurance coverage, it is provided by VFCU.

Regular shares are insured up to $100,000. IRA balances are insured, separately from your other VFCU accounts, up to $250,000 at no cost to you.

For those members needing more coverage, separate and/or multiple ownership of accounts provides a means to accomplish this. Ownership means the way an account is titled and how the funds in the account are held. For example, an individual account is one form of ownership, while a joint account and a trust account are others. When accounts are held in separate and/or multiple ownerships, each can be insured separately, increasing the amount of NCUA share insurance.

Here are a few of the most common forms of account ownership:

Individual Account: The funds are owned by one individual, and the account is in that person’s name only. A person can have a combined total of $100,000 in one or more individual accounts at VFCU.

Example: John Member

Joint Account: This type of account is in the names of two or more persons and all owners have equal rights of withdrawal. At VFCU, all joint accounts are held with right of survivorship, which means that if one of the joint owners dies, his/her share is then divided between the remaining owners of the account. Generally, each joint owner is attributed an equal share in each joint account in which he/she is named. The interest in all of the joint accounts is added up and each joint owner is insured up to $100,000.

Example: John Member and Sarah Member

Totten or Simple Trusts: These are payable-upon-death accounts. In this type of account the owner of the account designates a beneficiary to receive the funds when the owner dies. The owner of the account retains complete control over the account while they are alive. The funds in the account are insured up to $100,000 for each qualifying beneficiary. A qualifying beneficiary is a spouse, child, grandchild, parent or sibling of the owner (including steps). If the beneficiary is not a qualifying beneficiary, the funds in the account are added together with any funds held in individual accounts, and insured up to $100,000.

Example: John Member in trust for Sarah Member

Revocable Living Trusts: This is a trust account created pursuant to a Living Trust. A Living Trust is a formal document that, like a Totten or Simple Trust , will transfer assets to beneficiaries on the death of the creator of the revocable living trust. The living trust agreement will generally:

Allow the creator to retain control of the assets and the trust during his/her lifetime, including the right to change or end the trust itself; and
Create a beneficial interest that take effect only in the future, if the assets have not been disposed of before then and the trust has not been revoked. These accounts are insured in the same manner as Totten or Simple Trusts.

Example: The John Member revocable Living Trust dated January 1, 2007.

Traditional or Roth IRAs: To be separately insured, the accounts must qualify as an IRA under the Internal Revenue Code. A member’s funds in traditional or Roth IRAs (including IRA certificates) are added together and insured up to a maximum of $250,000.

The following are some examples of how members can increase share insurance coverage above the $100,000 limit: