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Maximize NCUA Coverage

CDmanFL
  |     |   286 posts since 2019

Friends,

My wife and I have a Joint Account (no beneficiaries) at a small credit union with $500K so we’ve hit the NCUA limit on that account. If I open an individual account at that same credit union and put my wife as beneficiary, does that provide an additional $250K of NCUA coverage? Also, if my wife opens an individual account at that same credit union and puts me as beneficiary, does that provide another $250K of NCUA coverage? So in other words, does this strategy provide $1 million of coverage? Thank you.

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Answers
MY2CENTSWORTH
  |     |   436 posts since 2016
Yessir! I believe you have it figured out correctly. Here is a very handy link so you can plug in the numbers and info as you see fit to calculate exactly what you are looking for.
https://edie.fdic.gov/calculator.html
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alan1
  |     |   877 posts since 2015
I believe the answer to your question is "yes and no". That is simply my belief. It is my belief that there is $1,000,000 worth of coverage under the scenario you described, provided that all beneficiaries are alive. It is my belief that when a beneficiary dies, the coverage is reduced.

I am specifically expressing my beliefs (which I suggest you regard as worthless) and not providing supporting quotations and links, in the hope that this will encourage you to review detailed material available at the website of the National Credit Union Administration and/or discuss the matter with a specialist at the NCUA. Those are far better sources than opinions posted here.

Also please note that it is possible that there are differences between NCUA deposit insurance and FDIC deposit insurance. FDIC publications and calculators may or may not apply to a particular situation involving deposit insurance at financial institutions insured by the National Credit Union Administration.
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2
RickZ
  |     |   218 posts since 2010
https://mycreditunion.gov/insurance-estimator

Credit Union Share Insurance Estimator from mycreditunion.gov (an official website of the United States government).
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1
mffarrell
  |     |   95 posts since 2018
You are correct, assuming the CU keeps accurate records in accordance to FDIC policy. If your account statement list your beneficiaries, you are covered. If not, it’s pretty dicey. I use to go over the FDIC limit of $250K with beneficiaries, but not anymore.

It’s not worth the risk.
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1


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