Your money couldn't be any safer

Ready for some good news from the financial world?

If your money is in a federally insured credit union, it couldn't be any safer.

In these days of bank failures, savings and loan bailouts, and other financial turmoil, that's pretty good news. And, the good news gets better. One reason your money is so safe is because credit unions are protected by a federal insurance fund that is totally separate from the system that covers banks and other financial institutions.

The insurance fund that protects your money is administered by an independent government agency called the National Credit Union Administration (NCUA). This agency administers what is known as the National Credit Union Share Insurance Fund (NCUSIF), which insures your savings (which credit unions call shares) in much the same way as the Federal Deposit Insurance Corporation (FDIC) insures deposits of banks and savings and loans. But the NCUA fund can boast some important differences:

NCUA'S fund is stronger than the FDIC funds.
Dollar for dollar, the NCUA insurance fund is much better capitalized than the FDIC-administered funds that insure banks and savings and loans. This means that for every dollar in your savings account-up to the legal limit of $100,000-the NCUA insurance fund has more money backing it up.

NCUA'S fund will stay strong.
As credit unions continue to enjoy steady growth, NCUA's fund will grow with them, for contributions to the fund are designed to increase in proportion to the growth in insured accounts.

NCUA'S fund gains strength from a healthy industry.
Failures of federally insured credit unions are relatively rare. So, an already strong insurance fund gets stronger, since so few credit unions ever need to draw out of it.

NCUA'S policies assure continued strength.
Federally insured credit unions may invest only in federally approved institutions and in their members, through loans with reasonable rates. They are prohibited by law from investing in junk bonds, third world countries, or other risky ventures that have gotten so many other financial institutions in trouble recently. It's a sound policy that protects your hard-earned dollars.

NCUA THE CREDIT UNION SYMBOL OF SAFETY
When you see the NCUA symbol of safety at your credit union, you can rest assured that the most secure federal deposit insurance fund in the nation protects you and your savings. It's a symbol you shouldn't forget.

Your credit union stands tall in the financial world. It exists to provide members with a safe, convenient place to save and to obtain loans at reasonable rates. Because it is a cooperative, your credit union is not owned by a company, an individual, or by some distant corporation with little interest in you beyond how much profit it can make. It is collectively owned by you and other members just like you. This unique nature is reflected in the independent agency established especially to regulate federally-insured credit unions.

NCUA... was established by an act of Congress and funded cooperatively and voluntarily by credit unions. Neither the government nor taxpayers were asked to foot the bill.

NCUA... protects credit union shares exclusively. Nothing more, nothing less.

NCUA... continues to be funded by annual credit union contributions. Tax dollars are not needed, nor are they sought.

To rest assured your money is safe, look for the credit union symbol of safety at your financial institution NCUA.

Presented by the National Association of Federal Credit Unions, an independent trade association representing federally chartered credit unions nationwide.

1992, National Association of Federal Credit Unions