Facts To Know About Your Insured Shares

Each member's funds are insured to $100,000 - and that limitation applies to the total of a persons funds in regular shares, share certificates, and share draft accounts for which an insured credit union is liable. So share insurance is not increased, for example, by putting $100,000 into a regular share account in the same insured credit union. In that case, $1000,000 is insured, not $200,000.

Actual title to each insured account must be in the name of the account holder named. Thus, if a member sets up a number of accounts under different names with no intention of creating the indicated ownership interest with respect to the funds, share insurance will not be increased. The funds will be insured only as the funds of the true owner.

ABOUT JOINT ACCOUNTS
A husband and wife, or any two or more persons, may have, in addition to their individual insured accounts, a valid joint account in the same insured credit union, separately insure to $100,000.

An individual may be co-owner of several insured accounts, each held jointly with a different individual, but all joint accounts held by the same combination of individuals are insured only to $100,000.

The total of separate insurance for an individual with an interest in several joint accounts is also limited to $100,000. Since each co-owner is deemed to have an equal interest, the interest in a $100,00 account held jointly with one other person is half, or $50,000. In this example, one can therefore be co-owner only of two fully-insured $100,000 accounts, each held jointly with a different individual.

Insurance protection is not increased by merely rearranging the name of owners, changing the style of names, or by having more than one joing account for the same combination of owners in the same insured credit union.

Each co-owner of a joint account much have equal withdrawal rights and must personally execute a signature card - except in the case of jointly-owned share certificates or shares represented by negotiable instruments.

ABOUT REVOCABLE TRUST ACCOUNTS
Funds deposited into revocable trust accounts whose beneficiaries are either a spouse, child, or grandchild of the owner are separately insured to $100,00, (in addition to the insurance on valid induviduaul and join accounts). They provide that, at the death of the owner, funds will pass to a named beneficiary, ie; spouse, child or grandchild. The person who has the power of revoking the trust is considered the owner of the account.