LorMet Community Blog

Federally Insured: What Does It Mean?

If you are one of the 90 million federal credit union members in the United States, you may have come across the term "Federally Insured." What does it mean? Since most people may not know the full implications of being federally insured, it's a good idea to look at this term more closely, especially in regards to the NCUA.

All federal credit unions in the United States are under the umbrella of the National Credit Union Administration (NCUA). The main functions of the NCUA include chartering, regulating, and insuring all the federal credit unions in the United States. As a member of a federal credit union, you will be pleased to know that your shares are insured by the National Credit Union Share Insurance Fund (NCUSIF). Since the backbone of the NCUSIF is the United States Government, it's absolutely secure. Check this fact. From the time the NCUSIF was approved by Congress in 1970 up to this present day, not a single member of a federal credit union has ever lost even a single penny of insured savings.

When a federal credit union runs into trouble, the NCUA will do everything in its powers to rescue it. If nothing can be done and the federal credit union fails, federal credit union members have nothing to worry about. Typically within 3 working days upon the closing of the credit union, the NCUSIF will make the requisite payouts to the each and every member of the credit union. Since October 2008, the Standard Maximum Share Insurance Amount is set at $250,000, so your savings are insured up to that figure, subject to the rules and regulations of the NCUA.

While not all credit unions are federally insured, the LorMet Community Federal Credit Union in Lorain County, Ohio is federally insured and growing stronger than ever.

Federally Insured • Since 1936