Important Changes to NCUA Share Insurance Coverage
By operation of federal law, beginning January 1, 2013, funds deposited in a non interest-bearing transaction account (including an interest on Lawyer Trust Account) no longer will receive unlimited share insurance coverage by the National Credit Union Administration (NCUA). Beginning January 1, 2013, all of a member’s accounts at an insured depository institution, including all non interest-bearing transaction accounts, will be insured by the NCUSIF up to the standard maximum share insurance amount ($250,000), for each share insurance ownership category.
For more information about NCUA share insurance coverage of non interest bearing transaction accounts, visit http://www.ncua.gov.
The National Credit Union Administration (NCUA) is an independent agency of the United States government that protects the funds members place in federally insured credit unions through the National Credit Union Share Insurance Fund (NCUSIF). This insurance is backed by the full faith and credit of the United States government. The Dodd-Frank Act has provided temporary unlimited deposit insurance coverage for noninterest-bearing transaction accounts (NIBTAs), including Interest on Lawyer Trust Accounts (IOLTAs) from December 31, 2010 through December 31, 2012. This unlimited coverage for NIBTAs is scheduled to expire on December 31, 2012.