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Your Money is Safe at 1st Financial Federal Credit Union

NCUA National Credit Union Administration

Your savings are federally insured to $250,000 by the National Credit Union Administration (NCUA), a U.S. government agency. In addition, your IRA funds are separately insured to $250,000 by the NCUA. The NCUA administers the National Credit Unions Share Insurance Fund (NCUSIF), which is similar to the banks' FDIC.

Rest assured that there is no safer place for your money than a federally insured credit union. Since 1968, 1st Financial Federal Credit Union has been a safe and sound financial institution helping members achieve their financial dreams.

With all the news on the financial sector, you may have questions about your safety of your funds:

Here are three key facts:

  • Bottom line first: Your deposits are safe, insured up to at least $250,000. Nothing that has taken place has impacted that insurance one bit.

    Our credit union is federally insured up to $250,000 by the National Credit Union Share Insurance Fund and backed by the full faith and credit of the U.S. Government through the NCUA (National Credit Union Administration), just as the FDIC does for bank deposits. No credit union member has ever lost a dime of federally insured funds.

    Share accounts in federally insured credit unions are insured up to the Standard Maximum Share Insurance Amount (SMSIA), $250,000 as of October 3, 2008.

    • Not one penny of insured savings has ever been lost by a member of a federally insured credit union.
    • You may obtain additional separate coverage on multiple accounts, but only if you have different ownership interests or rights in different types of accounts and you properly complete account forms and applications:

      For example, if you have a regular share account and an Individual Retirement Account (IRA) at the same credit union, the regular share account is insured up to $250,000 and the IRA is separately insured up to $250,000. However, if you have a regular share account, a share certificate, and a share draft account, all in your own name, you will not have additional coverage. Those accounts will be added together and insured up to $250,000 as your individual account. Additionally, shares denominated in foreign currencies are insured as outlined in NCUA Rules and Regulations.

    Coverdell Education Savings Accounts, formerly education IRAs, are insured as irrevocable trust accounts and will be added to a member's other irrevocable trust accounts and insured up to the SMSIA Roth IRAs will be added together with traditional IRAs and insured up to $250,000.

    The NCUSIF is administered by the National Credit Union Administration (NCUA), an agency of the federal government. To determine insurance coverage, see the NCUA’s insurance estimator at: http://webapps.ncua.gov/ins/

  • Credit unions are lending, providing a safe place for savings, and helping our members. In fact, credit unions are actively lending when other financial institutions have cut back.

    Our industry loan growth last year, even amid a recession, increased 7.5% nationally, suggesting more consumers struggling in today’s economy are looking for—and finding—affordable access to credit at their credit unions. We are continuing to actively lend this year.

  • Credit unions, where 90 million Americans save and borrow, are well capitalized and strong (more than 10% capital-to-assets compared to a federal "well capitalized" standard of 7%)

    Our capital cushion in stronger than you would find at most banks. Even the Wall Street Journal has noted that in today’s economy, regular credit unions like ours that serve consumers continue to be a safe haven and offer a great value. As an industry, our average capital-to-assets ratio is more than 10%. That’s considerably higher than the 7% industry standard for being "well capitalized" and higher than the banking industry’s average of about 9%. This 10% capital means credit unions are well positioned to absorb the cost of this action by the NCUA (which intends to charge higher federal deposit insurance premiums) with minimal outward impact on our members.

Additionally, Credit unions have steered clear of the sub-prime mortgage mess and are still lending responsibly. At a time when you need your credit union the most, 1st Financial Federal Credit Union is here to serve you.

For more information on federal share insurance, see the NCUA brochure "Your Insured Funds," available at the link here: http://www.ncua.gov/Resources/ShareInsurance/YourInsuredFunds.pdf

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