Facts for Depositors, Creditors and Borrowers
NCUA operates and manages the Share Insurance Fund, which insures deposits up to $250,000 at federally insured credit unions. A depositor with multiple accounts may qualify for more than $250,000 in share insurance coverage if the depositor’s accounts are of different legal ownership and the requirements for each type of legal ownership are met. To learn more about share insurance coverage, visit NCUA’s Share Insurance Toolkit for Consumers.
In the unlikely event of your credit union closing, you will receive a letter within a few days from NCUA’s Asset Management and Assistance Center (AMAC). AMAC works quickly to return your funds, generally within five days, and to minimize the disruption that the closing of your credit union causes.
Find up-to-date information on credit unions recently liquidated, conserved, or merged with NCUA assistance on the NCUA’s public website. (opens new window)
Closed Credit Unions
Administered by NCUA, the Share Insurance Fund insures individual accounts up to $250,000, and an individual’s interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund separately protects IRA and KEOGH retirement accounts up to $250,000 each, and also separately insures members’ revocable trust accounts (such as living trusts and payable-on-death) as well as irrevocable trust accounts. The Share Insurance Fund has the backing of the full faith and credit of the United States. Credit union members have never lost a penny of insured savings at a federally insured credit union.
NCUA’s online Share Insurance Estimator allows individuals to estimate their share insurance coverage.
Payment of Insured Share Accounts
If your aggregate share balance is more than $250,000, AMAC will review your share insurance prior to distributing the full amount. You may be asked to complete and return a Member Confirmation and Affidavit Form which AMAC will provide.
If you have an outstanding loan, your shares may be applied to a delinquent loan or your share may be held as collateral against a loan.
Payment of Insured Retirement Accounts
You will receive separate correspondence from AMAC with information and options pertaining to your IRA account.
Payment of Outstanding Loans
If you have an outstanding loan, you will need to send loan payments to the AMAC address provided to you. You must continue to make payments when they are normally due to avoid delinquency.
Creditors will be asked to file claims with AMAC by a certain date, as specified in the creditor notice. Any creditor claims filed after that date will be untimely and the claimant will be deemed to have waived all rights with respect to the claim.