 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 person's 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 and $100,000 in a share draft account in the same insured credit union. In that case, $100,000 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 interests 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 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 $100,000, (in addition to the insurance on valid individual and joint accounts). They provide that, at the death of the owner, funds will pass to a named beneficiary, i.e.; spouse, child or grandchild. The person who has the power of revoking the trust is considered the owner of the account.
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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 insured 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 $100,000 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 names of owners, changing the style of names, or by having more than one joint account for the same combination of owners in the same insured credit union.
Each co-owner of a joint account must 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.
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