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Are my account balances insured, and if so, for how much?

Redwood Credit Union's deposit accounts are federally insured by the NCUA for a minimum of $250,000. However, insurance can often be increased depending on the way an account is structured.

Below are examples of the insurance provided for various types of accounts:

  • Individual accounts without a pay on death beneficiary: $250,000
  • Joint or Multi-owner accounts without a pay on death beneficiary: $250,000 per owner
  • Trust account or accounts with pay on death beneficiaries: $250,000 per beneficiary for each account owner.
  • Business accounts: $250,000
  • IRA accounts: $250,000

Basics of Structuring Accounts to Maximize Insurance

  • Different account numbers or different shares with the same ownership at the same institution is not enough to expand NCUA insurance beyond the standard $250K. As long the ownership of accounts are the same, t they all are combined together for insurance purposes. The key is to change ownership structures.
  • Some easy ways to maximize coverage through different ownership are:
    • First and foremost: having beneficiaries (which we offer on all standard Membership and trust accounts). Pay on death beneficiary accounts are insured for $250K per beneficiary, per Account owner. For example, if the Member and her husband opened an account listing their 3 kids as beneficiaries, the account would be insured for $1.5 M ($250K X 6).
    • Next, each of the following types of accounts are insured entirely separately:
    • Individual
    • Joint
    • Trust/Pay on Death Beneficiary
    • Business

For Example: If the Member has an individual account with no beneficiary, and a joint account with his wife with no beneficiaries, that’s 2 different ownership types and would total $750K in insurance ($250K for the individual, $250K per owner on the joint).
These are just some very common examples, but there are many others. The key takeaway is that we can almost always find a way to ensure Members are fully covered. While it can sometimes be a bit confusing, using the Share Insurance Estimator tool is a great option as it customizes the coverage for the Member(s) for their situation.

Tools/Resources:

Related Items

Is Redwood Credit Union federally insured? Your RCU Accounts Are Safe Is Redwood Credit Union insured by the FDIC?

PPP Forgiveness Application Deadline

Congress passed The Economic Aid Act which changed the deferment period from 6 months post covered period to 10 months post covered period. For example, if your covered period ended June 30, 2021, under the new guidelines the earliest your first loan payment wouldn’t be due until April 2022, and you have until then to request forgiveness. Please use the following calculation to help you identify when your forgiveness will be due:

  • PPP borrowers may select a covered period anywhere from 8 weeks to 24 weeks.
  • RCU is automatically calculating your loan due date based on a 24-week covered period, if you intend on using a shorter covered period please inform us immediately as this will impact your due date.
  • Your correct deadline will be reflected in your online banking account.

If all or part of your PPP loan is not forgiven, your first loan payment will be due the first of the following month after a decision is made by the SBA.

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