National Credit Union
Share Insurance Fund
The National Credit Union Share
Insurance Fund (NCUSIF) is the federal fund created by Congress in
1970 to insure member's deposits in federally insured credit unions. The insurance limit was temporarily increased from $100,000 to $250,000 per individual depositor on October 3, 2008. Administered by the National Credit Union Administration,
the NCUSIF is backed by the "full faith and credit" of the U.S. Government.
How the Fund is Financed
The NCUSIF maintains at or near
1.30 percent of federally insured credit union deposits. By law, federally
insured credit unions maintain 1 percent of their deposits in the NCUSIF
and the NCUA Board can levy a premium if necessary. Credit unions voluntarily capitalized the Fund
in 1985 by depositing 1 percent of their deposits into the Fund. Since
then, the NCUA Board has charged only one premium, when three large New England credit unions failed
in 1992 substantially increasing insurance losses. No federal tax dollars
have ever been placed in the credit union financial Fund, and no member
has ever lost money insured by the NCUSIF.
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