NCUA Consumer Report: Share Insurance Account Ownership Types


CREDIT UNIONS SERVE THEIR
MEMBERS’ FINANCIAL NEEDS WITH A VARIETY OF DEPOSIT ACCOUNTS. FOR EXAMPLE, CREDIT UNIONS
COMMONLY OFFER SHARE SAVINGS, SHARE DRAFT, SHARE
CERTIFICATE, MONEY MARKET, AND RETIREMENT ACCOUNTS. EACH OF THESE ACCOUNTS HAS A
DEFINED OWNERSHIP TYPE. THE OWNERSHIP TYPE DETERMINES
HOW MUCH SHARE INSURANCE COVERAGE IS AVAILABLE. IN THIS VIDEO, WE WILL EXPLAIN
HOW TO ORGANIZE YOUR ACCOUNTS INTO OWNERSHIP TYPES IN ORDER
TO MAXIMIZE YOUR SHARE INSURANCE COVERAGE. OWNERSHIP TYPES INCLUDE:
SINGLE, JOINT, REVOCABLE TRUSTS, AND
RETIREMENT ACCOUNTS. GENERALLY, A CREDIT UNION
MEMBER HAS $250,000 IN COVERAGE FOR HIS OR HER
INTERESTS IN EACH OWNERSHIP TYPE. YOU MAY OBTAIN ADDITIONAL
SHARE INSURANCE COVERAGE, IF YOU HAVE DIFFERENT
OWNERSHIP INTERESTS IN THE ACCOUNTS, AND YOU PROPERLY
COMPLETE THE NECESSARY ACCOUNT FORMS AND APPLICATIONS. OWNERSHIP TYPES ARE BASED ON
THE NAMED OWNERS OF AN ACCOUNT AND WHETHER BENEFICIARIES ARE
DESIGNATED. IN ADDITION, INDIVIDUAL
RETIREMENT ACCOUNTS ALSO KNOWN AS IRAS ARE INSURED SEPARATELY
FROM OTHER ACCOUNTS YOU HAVE AT THE CREDIT UNION TO
$250,000. THE FIRST OWNERSHIP TYPE IS
SINGLE, ALL FUNDS ARE OWNED BY ONE
INDIVIDUAL MEMBER. FOR EXAMPLE, NCUA ADDS
TOGETHER YOUR REGULAR SHARE AND SHARE DRAFT ACCOUNTS ALONG
WITH ANY OTHER SINGLE OWNERSHIP ACCOUNTS YOU MAY
HAVE AND INSURES THEM UP TO $250,000. THE SECOND OWNERSHIP TYPE IS
JOINT ACCOUNTS. THEY HAVE AT LEAST TWO
OWNERS WHO POSSESS EQUAL WITHDRAWAL RIGHTS. NCUA PROVIDES $250,000 IN
COVERAGE FOR THE INTERESTS EACH CO-OWNER HAS IN JOINT
ACCOUNTS. ONLY THE PRIMARY MEMBER NEEDS
TO BE A MEMBER OF THE CREDIT UNION, CO-OWNERS ON A JOINT
ACCOUNT ARE NOT REQUIRED TO BE CREDIT UNION MEMBERS. THE THIRD OWNERSHIP TYPE IS
REVOCABLE TRUST ACCOUNTS, ALSO KNOWN AS PAYABLE ON
DEATH, IN-TRUST-FOR, LIVING TRUST, OR
FAMILY TRUST ACCOUNTS. THEY ARE SHARE ACCOUNTS OWNED
BY ONE OR MORE PEOPLE WHO INTEND TO LEAVE THEIR FUNDS TO
ONE OR MORE BENEFICIARIES WHO WILL RECEIVE THE FUNDS UPON
THE DEATH OF THE OWNER(S). A BENEFICIARY CAN BE A NATURAL
PERSON, CHARITABLE ORGANIZATION, OR
OTHER IRS RECOGNIZED NON-PROFIT ENTITY. NCUA GENERALLY INSURES THE
OWNER OF THESE ACCOUNTS BY PROVIDING $250,000 IN COVERAGE
FOR EACH DIFFERENT BENEFICIARY, REGARDLESS OF
EACH BENEFICIARY’S INTEREST IN THE ACCOUNT. UNLIKE JOINT ACCOUNTS, ALL
REVOCABLE TRUST ACCOUNT OWNERS MUST BE MEMBERS OF THE CREDIT
UNION TO OBTAIN INSURANCE COVERAGE. SPECIAL RULES APPLY FOR
DETERMINING COVERAGE ON REVOCABLE TRUST ACCOUNTS OVER
$1.25 MILLION WHERE THERE ARE MORE THAN FIVE BENEFICIARIES. THE FOURTH OWNERSHIP TYPE NCUA
COVERS SEPARATELY IS RETIREMENT ACCOUNTS. THIS TYPE INCLUDES TRADITIONAL
AND ROTH IRAS OR KEOGH ACCOUNTS. A KEOGH IS A TYPE OF
RETIREMENT PLAN FOR SELF-EMPLOYED PEOPLE OR SMALL
BUSINESSES, BUT IT IS NOT AN IRA. NCUA ADDS YOUR TRADITIONAL AND
ROTH IRAS TOGETHER FOR INSURANCE COVERAGE UP TO A
MAXIMUM OF $250,000. NCUA ALSO INSURES YOUR KEOGH
ACCOUNT UP TO $250,000 SEPARATELY FROM ANY
TRADITIONAL OR ROTH IRA ACCOUNTS YOU MAY HAVE AT THE
SAME CREDIT UNION. REMEMBER, FOR MORE INFORMATION
ABOUT HOW YOUR MONEY IS SAFE AT A FEDERALLY INSURED CREDIT
UNION, GO TO MYCREDITUNION.GOV. THANK YOU FOR WATCHING.

One comment on “NCUA Consumer Report: Share Insurance Account Ownership Types”

  1. d6487 says:

    hello,
    What is the terminology for the following description:
    Let's say you have 6 bank account from different bank institutions.
    But, instead of seeing 6 different bank statements each month. You only see only ONE simple Statement which summarizes everything into one cleanly. I think it's called a CHARD or CARD..i forgot. Please help!!

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