As Community First Bank prepares to join with HAPO Credit Union later this year, we want to explain how your money stays protected. You might have heard of FDIC insurance at banks and NCUA insurance at credit unions. Both federal insurance programs protect your money equally well, and we’ll explain exactly how they work.
Your Money’s Protection Stays Strong
Think of FDIC and NCUA insurance like having two different insurance companies that both offer the exact same protection for your money. Both are backed by the United States government, which means your money has the strongest protection possible. When we become part of HAPO Credit Union, your money will stay just as safe as it is now – only the name of the insurance will change from FDIC to NCUA.
How Much Protection Do You Have?
Both FDIC and NCUA insurance protect up to $250,000 per person, per account type. You don’t need to sign up for this protection or pay any fees – it happens automatically when you open an account.
Here’s a simple example of how this works. Let’s say you have:
- A personal savings account with $200,000
- A joint account with your spouse holding $400,000
- An IRA account with $250,000
All of this money, $850,000 in total, would be completely protected because each type of account has its own separate coverage for each person.
For our Business Clients, your funds will continue to be safe and secure under NCUA, just as they are currently under FDIC This same protection applies whether you’re at a bank or a credit union.
How to Check Your Coverage
Want to make sure all your money is protected? The NCUA offers a simple online calculator. You can use this tool to see how much of your money is protected, explore different account options, and find ways to protect more of your money if needed.
We’re also happy to sit down with you and review your accounts to ensure you have the maximum protection possible.
What’s Protected?
Both FDIC and NCUA insurance protect:
- Checking accounts
- Savings accounts
- Money Market accounts
- Certificates of Deposit (CDs)
- Retirement accounts (like IRAs)
Remember, investment products like stocks, bonds, mutual funds, life insurance policies, annuities, and cryptocurrencies are not covered by either FDIC or NCUA insurance.
Important Things to Know
- Your protection is automatic – you don’t need to sign up or pay for it
- Coverage starts the moment you make a deposit
- Both your initial deposit and any interest/dividends earned are protected
- You can increase your coverage by opening accounts with different ownership categories and adding beneficiaries.
Questions?
We’re here to help you understand how your money stays protected. If you have any questions about your specific accounts or coverage, please stop by any branch or give us a call. We can:
- Review your accounts to ensure maximum protection
- Show you how the coverage calculator works
- Explain different account options
- Answer any other questions you might have
The Bottom Line
Whether your money is in a bank or a credit union, federal insurance keeps it safe. As we transition to HAPO Credit Union, you can be confident that your money remains fully protected, just as it always has been. The only change is the name of the insurance – from FDIC to NCUA. Both provide the same excellent protection backed by the United States government.
Your financial security is our top priority, and we’re here to help you understand exactly how your money stays protected. Please don’t hesitate to ask us any questions. We’re happy to help!
Maggie Gourley, Branch Manager
