Non-intrest bearing acct

I understand the need to get a non-intrest bearing acct. due to the fdic, do the same rules apply to Credit unions?
thanks in advance.

jjbeck64 wrote:I understand the need to get a non-intrest bearing acct. due to the fdic, do the same rules apply to Credit unions?
thanks in advance.

Hi

I posted the following in another location:
Hi Folks,

I'm posting something I think will help. I opened up "NON-INTEREST BEARING ACCOUNT" at my local credit union and I am posting some documentation which may help confirm the information which has already been posted by some others.

For traditional banks such as BOA, Wahovia etc. those banks are covered by FDIC. For Credit Unions the covcerage is offered through: National Credit Union Share Insurance Fund (NCUSIF), an arm of the National Credit Union Administration (NCUA).

This information posted here comes from my local credit union:
NCUA Insurance

The deposits you have in VyStar Credit Union are insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of the National Credit Union Administration (NCUA).

The NCUA is an independent agency of the United States Government. NCUA regulates, charters, and insures the nation's federal credit unions. In addition, NCUA insures state-chartered credit unions that desire and qualify for federal insurance. In some states, state-chartered credit unions are required by state law to be federally insured.

Established by Congress in 1970 to insure member share accounts at federally insured credit unions, the NCUSIF is managed by NCUA under the direction of the three-person NCUA Board. The members of the NCUA Board are nominated by the President of the United States of America and confirmed by the Senate. Your insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation (FDIC).


NOTICE OF CHANGES IN TEMPORARY NCUA INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS



All funds in a ‘‘noninterest-bearing transaction account’’ are insured in full by the National Credit Union Administration through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to members under the NCUA’s general share insurance rules. The term ‘‘noninterest-bearing transaction account’’ includes a traditional share draft account (or demand deposit account) on which the insured credit union pays no interest or dividend. It does not include any transaction account that may earn interest or dividends, a negotiable order of withdrawal (‘‘NOW’’) account, money market deposit account, and Interest on Lawyers Trust Account (‘‘IOLTA’’), even if share drafts may be drawn on the account. For more information about temporary NCUA insurance coverage of transaction accounts, visit www.ncua.gov.

Enjoy the information. Take Care and God Bless all of you.