$250K NCUA Insurance Per Customer Facing Credit Union?

kevin1 | Sep 26, 2016 | 1 posts since 2016

Hi,

I noticed that a lot of credit unions use the same credit union in the back end to store their money, do transactions, etc. Like for example Catalyst Corporate Federal Credit Union is used by a lot of credit unions.

If you use multiple credit unions that happen to all use the same credit union in the back end (e.g. Catalyst), would that mean your NCUA insurance is only $250,000 total for all of those credit unions? Or is what is used the customer facing credit union and so it would be $250,000 PER credit union then regardless of what they use in the back end?

Thanks

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Answers

Shorebreak | Sep 26, 2016 | 4,039 posts since 2010

It appears Catalyst Corporate Federal Credit Union is a credit union for credit unions providing a variety of services. However, your funds are still insured with NCUA for $250,000 at each credit union since your account is with ABC Credit Union not Catalyst Corporate FCU.

Catalyst Corporate Federal Credit Union is a wholesale cooperative financial institution that serves more than 1,400 member and client credit unions throughout the country. Catalyst Corporate provides its members with core financial services and back-office support, including payment solutions, liquidity, investment options and balance sheet management assistance.

http://www.catalystcorp.org/about-us/overview?selfid=1&tid=1

Bozo | Sep 30, 2016 | 1,375 posts since 2011

Worrying about the $250K limit is a problem many would like to have. Aside from IRAs, an individual has many ways to increase the FDIC/NCUA limits. Ask your bank or credit union. Joint accounts, PODs, disjunctive accounts, etc.

lou | Oct 2, 2016 | 1,004 posts since 2010

Everything you said is correct except for the part about asking your bank or credit union. The people who work for banks and credit unions are generally useless in explaining the FDIC/NCUA limits for your accounts. Also, if they are wrong, see what happens if the bank fails and not all your deposits are insured.

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