Our Deposit Insurance Has Increased

Hello everyone,

As you know, late last week President Bush signed into law the financial rescue bill, technically known as the Emergency Economic Stabilization Act, HR 1424. This is a very significant bill for banks as well as credit unions. Why, you might ask?  Because now, thanks to the legislation, our deposit insurance has increased to $250,000, from the current $100,000 by the NCUSIF, the National Credit Union Share Insurance Fund. The increase, according to legislation is temporary, and is good from now through December 31, 2009.

Credit Unions were included in this provision, which means that we still, remain on the same level as FDIC-insured banks in terms of deposit insurance coverage. We are still a safe and sound choice for your financial institution.

However, Hopewell Federal also offers Excess Share Insurance to all of our members, also known as ESI. This insurance provides you with an additional $250,000 of savings coverage to qualifying accounts through ESI, a licensed property and casualty insurance company. So in total, your deposits at Hopewell Federal are insured up to at least $500,000. I’m sure a half million will give most of you, the peace of mind you’ve been looking for… Do all credit unions offer ESI insurance? No. We do, because our Volunteer Board of Directors feels it’s the right thing to do.

In addition, the National Credit Union Administration (NCUA) insures Individual Retirement Accounts, or IRA’s separarely as well, to up to $250,000. This is the amount that they’ve always offered and remains unchanged. However, this is also matched by ESI coverage so your IRA accounts are also insured up to $500,000.  

Next year, Congress will tackle the question of whether or not they will be making this insurance increase permanent.

If you have an account with us, I hope you find this information helpful and that it gives you peace of mind about your deposits at Hopewell Federal. And, if your current financial institution can not provide you this level of coverage and comfort, which let’s face it, we could all use during these stressful economic times, then, I say to you…consider making the switch to Hopewell Federal.