Your First Northern deposits are federally insured to at least $250,000
Credit unions like First Northern are regulated by the National Credit Union Administration (NCUA) and insured by the National Credit Union Share Insurance Fund (NCUSIF), which is backed by the full faith and credit of the United States government.
Established by Congress in 1970 to insure member share accounts at federally-insured credit unions, NCUSIF is similar to deposit insurance coverage provided by the Federal Deposit Insurance Corporation (FDIC), and credit union members have never lost a penny of insured savings at a federally-insured credit union.
Learn More at MyCreditUnion.gov
The National Credit Union Administration (NCUA) is the independent agency that administers the National Credit Union Share Insurance Fund (NCUSIF).
Like the FDIC's Deposit Insurance Fund for banks, the NCUSIF is a federal insurance fund for credit unions, backed by the full faith and credit of the United States government.
The NCUSIF insures member savings in federally-insured credit unions, which account for about 98 percent of all credit unions in the United States. Deposits at all federal credit unions and the vast majority of state-chartered credit unions are covered by NCUSIF protection.
The NCUSIF protects members’ accounts in federally-insured credit unions, in the unlikely event of a credit union failure. The NCUSIF covers the balance of each member’s account, dollar-for-dollar up to the insurance limit, including principal and posted dividends through the date of the failure.
NCUA share insurance covers many types of share deposits at a federally-insured credit union, including deposits in a:
- Share draft (checking) account,
- Money market account, or
- Share savings account, or
- Time deposit such as a share certificate.
NCUA share insurance covers members' accounts at each federally-insured credit union, dollar-for-dollar, including principal and any accrued dividend through the date of the insured credit union’s closing, up to the insurance limit. This coverage also applies to nonmember deposits when permitted by law.
NCUA does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investment or insurance products are sold at a federally-insured credit union. Credit unions may provide these services to their members through third-parties, and the investment and insurance products are not insured by the NCUSIF. In locations where these investment and insurance products are offered or sold to members, credit unions are required to disclose that the products:
- are not insured by NCUA;
- are not deposits or other obligations of the credit union and are not guaranteed by the credit union; and
- are subject to investment risks, including possible loss of the principal invested.
In addition, NCUA does not insure safe deposit boxes or their contents.
You may qualify for more than $250,000 in coverage at one insured credit union if you own share accounts in different ownership categories, as noted below.
The most common account ownership categories for individual and family shares are single owner accounts, joint accounts, certain retirement accounts, revocable trust accounts, and irrevocable trust accounts and are insured individually as follows:
- Single Ownership Accounts (owned by one person with no beneficiaries): $250,000 per member-owner
- Joint Ownership Accounts (two or more persons with no beneficiaries): $250,000 per owner (with the primary owner a member of the credit union)
- IRAs and other certain retirement accounts: $250,000 per member-owner
- Revocable trust accounts: Each member-owner is insured up to $250,000 for each eligible beneficiary named or identified in the revocable trust, subject to limitations and requirements.
- Irrevocable trust accounts: Each owner (so long as all owners OR all beneficiaries are members of the credit union) is insured up to $250,000 for each beneficiary named or identified in the irrevocable trust, subject to specific limitations and requirements. Coverdell Education Savings Accounts, formerly education IRAs, are insured as irrevocable trust accounts.
- A qualifying eligible beneficiary must be a natural person, or a charitable organization or non-profit entity under the Internal Revenue Code.
Use the online share insurance estimator
Ensuring your deposits remain insured to at least $250,000
If you and your family have $250,000 or less in all of your share deposit accounts at the same insured credit union, you do not need to worry about your insurance coverage — your shares are fully insured.
A member can have more than $250,000 at one insured credit union and still be fully insured provided the accounts meet certain requirements and are properly structured. For additional information on this, contact us and we can help, or review the publications below.
In addition, federal law provides for insurance coverage of up to $250,000 for certain retirement accounts.
Share Insurance Coverage Overview How Your Accounts Are Federally Insured Your Insured Funds