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For Your Information

Deposit Insurance

We at South Jersey Federal Credit Union want you to feel secure knowing your funds at the credit union are protected. At SJFCU, your deposits are now insured up to $500,000.

What provides this high level of insurance coverage?

The exceptional level of coverage is attained through a combination of

  • federal insurance provided by the National Credit Union Share Insurance Fund (NCUSIF) – the credit union counterpart of FDIC, and
  • private insurance by the Excess Share Insurance (ESI) Corporation.

Tell me more about the NCUSIF.

The National Credit Union Administration (NCUA) is the federal agency that charters and supervises federal credit unions. The NCUA insures savings in all federal credit unions nationwide through the NCUSIF. The NCUSIF is a federal fund backed by the full faith and credit of the U.S. government.

How did the insurance coverage arrive at its current level?

  • The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 includes provisions making permanent the $250,000 maximum federal deposit insurance level (which had been temporary until December 31, 2013).
  • Federal deposit insurance for both credit unions and banks was first increased from $100,000 to $250,000 as a provision of the Emergency Economic Stabilization Acct of 2008, enacted in October 2008.
  • The coverage for retirement accounts such as IRAs is unchanged and remains at $250,000.

Explain ESI coverage.

In addition to the deposit insurance provided by NCUSIF, South Jersey Federal Credit Union chooses to provide additional coverage through Excess Share Insurance (ESI) Corporation.

  • The ESI coverage provides an additional $250,000 of coverage for savings and retirement accounts.
  • ESI Corporation is a subsidiary of American Share Insurance, the nation’s largest private deposit insurer for credit unions.
  • Members exceeding the maximum level of coverage provided by the NCUSIF are insured up to an additional $250,000 by ESI.

NCUSIF Insurance

ESI Insurance

TOTAL

Savings Accounts*

$250,000

$250,000

$500,000

Retirement Accounts**

$250,000

$250,000

$500,000

*Statement Savings, Club Accounts, Checking, CDs, Money Market Accounts, etc. (Money Market Accounts at the credit union are insured and should not be confused with Money Market Funds which are tied to an index.)

** IRA, Roth IRA, IRA CDs, etc.

Some Guidelines

  • Generally, if a credit union member has more than one account, those accounts are added together and insured up to $500,000.
  • Joint, individual retirement and certain other account relationships are insured separately and are subject to other federal guidelines regarding insurance.
  • Individual Retirement Accounts (IRAs) are subject to separate coverage by NCUSIF up to $250,000 and are insured up to $500,000 with the addition of ESI’s maximum coverage, as shown in the chart above.