The National Credit Union Administration (NCUA) is an agency of the U.S. Government and is responsible for the administration of the laws and regulations which govern federally chartered credit unions.
Generally, if a credit union member has more than one account in the same insured credit union, those accounts are added together and are insured up to at least $250,000. Shares maintained in different legal ownership capacities may each be separately insured. Individual, joint ownership, and testamentary accounts are the three most common types.
All funds in a "noninterest-bearing transaction account" are insured in full by the National Credit Union Administration through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to members under the NCUA's general share insurance rules.
The term "noninterest-bearing transaction account" includes a traditional share draft account (or demand deposit account) on which the insured credit union pays no interest or dividend. It does not include any transaction account that may earn interest or dividends, a negotiable order of withdrawal ("NOW") account, money-market deposit account, and Interest on Lawyers Trust Account ("IOLTA"), even if share drafts may be drawn on the account.
For more information about temporary NCUA insurance coverage of transaction accounts, visit www.ncua.gov.
With federal share insurance through NCUA, these types of accounts are insured separately (to at least $250,000) from other accounts that the member maintains at the same credit union.
NCUA insures each member up to $250,000. Each credit union approved for insurance must meet stringent standards. Adherence to these standards is determined through regular examinations by Federal Examiners. Your Supervisory Committee also directs a full annual audit, which is performed by an independent Certified Public Accounting firm.
The law also requires that a percentage of the earnings be placed into reserves to protect against losses.
JHFCU has a surety bond which protects the Credit Union's money and valuable papers against robbery, forgery, dishonesty, and other hazards.