Our members share deposits are covered up to $500,000 through NCUA and ESI!
Primary Share Insurance:
Garden Savings Federal Credit Union is a federally insured credit union through the National Credit Union Administration (NCUA). The NCUA insures our members share accounts through it's National Credit Union Share Insurance Fund (NCUSIF) up to $250,000. Share insurance coverage offered through the NCUSIF protects members against losses if a federally insured credit union should fail. You can confidently join and conduct busines with Garden Savings Federal Credit Union, a NJ-based federally insured credit union; because no member has ever lost a penny from accounts insured by the NCUSIF.
Historically, insured funds are availabe to members within just a few days after the closing of an insured credit union. Failures of federally insured credit unions are rare becuase only those with sound operational standard qualify to receive NCUSIF coverage. The NCUA regularly reviews the operations of all federal credit unions and works closely with state regulatory authorities to evaluate federally insrued, state-charted credit unions.
Additional Insurance:
In addition to the $250,000 in insurance from the NCUA, Garden Savings purchases an additional $250,000 from a private organization known as Excess Share Insurance (ESI) for all member deposits. This gives all members a $500,000 insurance coverage on their deposits held at the credit union.
Click here to learn more about Excess Share Insurance.
Retirement Accounts
Members with traditional and Roth Individual Retirement Accounts (IRAs) and KEOGH retirement accounts at Garden Savings FCU have additional coverage where they qualify and are members. The NCUA insures traditional and Roth IRAs for $250,000 in the aggregate at each credit union. Additionally, the NCUA insures KEOGH accounts separately in the aggregate to $250,000 at Garden Savings FCU.
Retirement account insurance protection is separate and apart from insurance coverage on other credit union accounts. For example, if you have a regular share account, an IRA, and a KEOGH at Garden Savings FCU, the NCUA and ESI insure the regular share account for up to $500,000, the IRA for up to an additional $500,000, and the KEOGH for up to an additional $500,000, which will not exceed the maximum coverage threshold of $750,000.
Joint Accounts
Joint accounts are owned by two or more people who have equal rights to withdraw money from the account, and no beneficiaries are named. These accounts can include regular shares, share drafts (similar to checking), money market accounts, and share certificates. The NCUSIF and ESI provide each joint account holder with $500,000 coverage for their aggregate interests at Garden Savings FCU.
For example, a two-person joint account with no beneficiaries has $750,000 in coverage. This coverage is separate from and in addition to the coverage available for other accounts, such as individual accounts with no beneficiaries and retirement accounts.
Trust Accounts
The NCUSIF provides separate coverage for both revocable and irrevocable trusts. Members can contact Garden Savings FCU or visit a local branch to properly establish and seek assistance with required documents for trust arrangements.
Revocable Trusts
Revocable trust accounts may qualify for insurance coverage of up to $250,000 per beneficiary named by the owner if a member of the credit union, which is separate from the individual coverage available to the trust owner. For example, if a person with a revocable trust for $750,000 names a spouse and two children as beneficiaries, the entire $750,000 would have separate NCUSIF coverage ($250,000 per beneficiary). This coverage is separate from the coverage provided to the other types of accounts held by the trust's owner at Garden Savings FCU.
Irrevocable Trusts
Irrevocable trusts have separate coverage based on the beneficial interest. The interest of each beneficiary in an account(s) established as an irrevocable trust has separate NCUSIF coverage of up to $250,000. In cases where a beneficiary has an interest in more than one trust arrangement created by the same owner, the interest of the beneficiary in all accounts established under such trusts is added together for insurance purposes and insured for a total of up to $250,000.
Coverage Limits
The standard share insurance amount is a combined total of $500,000 through NCUA and ESI, per share owner at Garden Savings FCU, for each account ownership category except Trusts, which are only covered under NCUSIF.
