National Credit Union Share Insurance Fund

The share insurance at the UHFCU is similar to the deposit insurance provided to banks by the Federal Deposit Insurance Corporation (FDIC). Share accounts in federally insured credit unions are protected up to $100,000, an amount comparable to the insurance protection offered by the FDIC. 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 $100,000. There are exceptions, however. If a member has a regular share account and an Individual Retirement Account in the same credit union, each account is separately insured up to $100,000. The NCUA Insurance booklet gives a more detailed explanation of insurance coverage.

Not one penny of insured savings has ever been lost by a member of a federally insured credit union. The federal insurance fund has several programs to help insured credit unions which may be experiencing problems, and liquidations or failures are usually done only as a last resort. If a federally insured credit union does fail, however, the National Credit Union Share Insurance Fund (NCUSIF) will normally make any necessary payouts within two weeks of the time the credit union closes its doors.

Insured credit unions are required to deposit and maintain 1% of their insured shares in the NCUSIF. The fund is currently at the strongest and best reserved level in its history. Historically, deposit insurance funds strive for a ratio of equity to insured savings of at least 1%. The NCUSIF ratio of equity to insured savings exceeds this, ranging from 1.25% to 1.30%.

As a member of the University of Hawai'i Federal Credit Union, you do not pay directly for your share insurance protection. The University of Hawai'i Federal Credit Union funds the NCUSIF with a deposit based on the total amount of insurable shares in the Credit Union.