Each member's funds are insured to at least $250,000 by the National Credit Union Administration, an agency of the United States Government.
Each member's funds are insured to at least $250,000 by the National Credit Union Administration, an agency of the United States Government. The $250,000 limitation applies to the total of a person's funds in checking, savings, and certificate accounts for which Star One is liable.
Actual title to each insured account must be in the name of the account holder named. Thus, if a member sets up a number of accounts under different names with no intention of creating the indicated ownership interests with respect to the funds, savings insurance will not be increased. The funds will be insured only as the funds of the true owner.
In addition to their individual insured accounts, each person is entitled to a maximum of $250,000 coverage for their interest in all of their joint accounts.
These accounts, or any similar accounts which evidence an intention that the funds shall pass on the death of the owner to a named beneficiary, are considered revocable trust accounts and are insured as a form of individual account. The funds in such accounts are insured for the owner up to a total of the $250,000 SMISA for each beneficiary separately from any other individual accounts of the owner. If the beneficiary is not a natural person or charitable organization or other non-profit entity under the Internal Revenue Code of 1986, the funds in the account that are attributable to that beneficiary are treated as an individually owned account of the owner, aggregated with any other individual accounts of the owner, and insured to the $250,000 SMISA.
Any funds in IRA Accounts are eligible for separate insurance protection up to $250,000. They are not included in the chart above because they are subject to special rules for deposit and withdrawal.
Grandparents must be married to each other in order for the revocable trust accounts of one for the other to be separately insured.
Star One cannot officially sanction and approve this page because the examples, although generally accurate, are designed to simplify in layman's terms rather complex rules that in some circumstances may only be fully understood in the statutory and regulatory context in which they were written.
Individual Accounts: | |
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Husband | $250,000 |
Wife | $250,000 |
Joint Accounts: | |
Husband & Wife | $500,000 |
Revocable Trust Accounts: | |
Husband as Trustee for Wife | $250,000 |
Wife as Trustee for Husband | $250,000 |
Maximum | $1,500,000 |
Individual Accounts: | |
---|---|
Husband | $250,000 |
Wife | $250,000 |
Child Number One | $250,000 |
Child Number Two | $250,000 |
Joint Accounts: | |
Husband & Wife | $250,000 |
Husband & Child Number One | $250,000 |
Wife & Child Number Two | $250,000 |
Child Number One & Child Number Two | $250,000 |
None of the co-owners has an interest of more than $250,000 in all of the joint accounts, so the total amount held by each of the co-owners in all of the joint accounts is insured. |
|
Revocable Trust Accounts or POD Accounts: | |
Husband as Trustee for Wife | $250,000 |
Wife as Trustee for Husband | $250,000 |
Husband as Trustee for Child Number One | $250,000 |
Wife as Trustee for Child Number One | $250,000 |
Husband as Trustee for Child Number Two | $250,000 |
Wife as Trustee for Child Number Two | $250,000 |
Maximum | $3,500,000 |