Credit Union Insurance Matches FDIC Amount

ALBANY, NY (10/17/2008)(readMedia)-- Credit union accounts are covered up to $250,000 following President Bush's signing of the Emergency Economic Stabilization Act of 2008. Prior to the signing, deposit accounts had been insured up to $100,000. The increase is temporary, taking effect immediately until Dec. 31, 2009.

"During the current economic climate, it is important to remind consumers that credit unions continue to be a safe harbor for consumer savings because their accounts are federally insured to the same extent as other financial institutions," said William J. Mellin, president/CEO of the Credit Union Association of New York.

The temporary increase assures credit union members that their deposits are fully protected by the National Credit Union Share Insurance Fund (NCUSIF). The NCUSIF, like the FDIC, is backed by the full faith and credit of the U.S. government and overseen by the National Credit Union Administration, an agency of the federal government.

However, unlike the FDIC, the NCUSIF has never cost taxpayers a dime.

Credit unions remain healthy, well-capitalized, responsible lenders. As member-owned, not-for-profit financial cooperatives, credit unions are focused on serving their members rather than profiting from them. As a result, credit unions continue to provide one of the safest savings options for consumers.

There are currently 476 credit unions in the state of New York. As of June 30, 2008, they had in excess of 4.2 million members and held more than $43 billion in deposits.

The Credit Union Association of New York has served as the trade association for the state's credit unions for 91 years. It is the fifth largest league in the country. New York credit unions have assets of more than $40 billion and 4.2 million members. To learn more about the Association, visit www.cuany.org.

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