When it comes to safeguarding your money, the peace of mind that comes with knowing your deposits are insured is priceless. At MMCCU, members already enjoy the security of federal share insurance coverage through the National Credit Union Administration (NCUA), which insures deposits up to $250,000. But what if your savings exceed that threshold? Starting November 1, MMCCU is excited to offer Excess Share Insurance, which extends your deposit insurance up to $1 million – all at no extra cost to you.
Understanding Share Insurance and Why It Matters
The $250,000 insurance limit provided by NCUA is in place to protect members’ funds in the unlikely event that a credit union fails. Essentially, if MMCCU were to experience a financial failure, your deposits up to $250,000 are insured and guaranteed by the federal government. This means your money is safe, even if the credit union can no longer operate.
But for some members, particularly those with large balances, this limit may not be enough. If you have more than $250,000 in deposits, any amount over that threshold is typically unprotected by federal insurance. This gap can be a concern for members who want to keep more of their funds with one institution without the risk of losing uninsured amounts in a rare but devastating scenario.
Why Excess Share Insurance is a Game-Changer
As of November 1, MMCCU will offer Excess Share Insurance, which extends protection for deposits up to $1 million. This means members with large deposits can feel secure knowing their funds are insured well beyond the standard $250,000 limit.
With the increase to $1 million in total deposit insurance, this solution offers an alternative to spreading out funds across multiple institutions to stay under the $250,000 cap at each. For members with significant savings or investments, consolidating these deposits under one financial institution, while maintaining full insurance coverage, makes managing money simpler and safer.
Lessons from the Past: Why Deposit Insurance Matters
You may remember the concerns surrounding the Silicon Valley Bank (SVB) collapse in March 2023. One of the key drivers behind the bank’s failure was large depositors pulling their million-dollar-plus deposits out of the bank, fearing the loss of their uninsured funds. This run on deposits drained the bank’s cash and reserves, ultimately contributing to its downfall. The situation served as a critical reminder of the importance of deposit insurance.
At MMCCU, we understand that for our members with larger savings, ensuring the security of those funds is crucial. By offering Excess Share Insurance, we’re providing an added layer of protection that many traditional banks simply don’t offer without extra costs or complexity.
No Cost to Members
One of the best features of our new Excess Share Insurance program is that it’s completely free for our members. The cost of this added insurance is covered by MMCCU, so you get the benefits of extended coverage without having to pay anything extra. This is part of our ongoing commitment to providing exceptional value and peace of mind to our members.
Learn More and Protect Your Funds
While the NCUA’s $250,000 coverage is a nuanced product and includes ways to maximize insurance across different account types and ownership categories, the simplicity of MMCCU’s Excess Share Insurance means your deposits are insured up to $1 million without needing to worry about complex calculations.
For members interested in learning more about how their deposits are insured, we recommend using the NCUA’s share insurance estimator at NCUA Insurance Estimator. It’s a helpful tool to provide you with a detailed look at how the insurance works, and our team is always available to answer questions and guide you through the process.
If you’re looking for a way to protect your larger deposits while keeping everything under one roof, consider MMCCU’s Excess Share Insurance. Starting November 1, your funds up to $1 million will be insured, giving you confidence and peace of mind that your savings are safe with us.
Visit MMCCU or contact our team today to learn more about how Excess Share Insurance can work for you!