The National Credit Union Administration (NCUA) is the federal government agency that oversees credit unions in the United States. In today’s blog from Volt, we explain what the NCUA does for financial institutions such as ourselves.
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Insuring Members’ Accounts to $250,000
The NCUA insures members’ accounts to a maximum of $250,000 through the National Credit Union Share Insurance Fund. It also protects IRA and KEOGH retirement accounts up to the same amount. In essence, if a credit union fails at some point in the future, each account is insured up to $250,000. The NCUA’s insurance fund is backed by the federal government’s financial stability.
Other support services include providing investment relief and conservatorships for failed credit unions. This may seem like a lot of “gloom and doom,” but one key aspect of the NCUA is to offer an effective safety net for credit union members. Most credit union members don’t need to worry about their institution failing. Only 10 credit unions failed in 2017, while eight failed in 2018.
The NCUA provides regulatory guidance for when Congress changes financial laws that affect credit union members. For example, the NCUA sends letters to credit unions on procedures, compliance, and governance that apply to all federally insured credit unions.
Every once in a while, the NCUA may issue risk alerts that could pose significant threats to the credit union system, such as during an economic downturn or a pandemic like COVID-19. Our credit union will also receive letters outlining annual reports and statistical data about our industry. If you have any questions regarding these letters, we’d be happy to show them to you and explain why the NCUA issued them.
Beyond all of the regulatory language and legalese, the NCUA’s consumer portal explains the most important things you need to know as a member of a credit union. The NCUA has a consumer assistance center when resolving disputes with a credit union, a credit union locator, financial literacy articles, and a fraud prevention center to help protect you from scams.
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Questions? Volt Credit Union Has Answers!
Do you have questions about the NCUA and how it helps you? Contact Volt Credit Union today and we’ll happily answer any of your questions. The staff at Volt Credit Union hopes you start out 2021 with the best financial health possible!