Deposits in the federally insured credit unions will now be covered up to $250,000 following the passage of the Emergency Economic Stabilization Act of 2008 by the House of Representatives today. The National Credit Union Administration oversees the NCUA federal insurance fund that provides consumers with exactly the same deposit insurance coverage that banks get from FDIC.
The legislation (the “Emergency Economic Stabilization Act of 2008”) increases federal savings insurance coverage from $100,000 to $250,000. The increase is temporary, taking effect from the date of enactment of the legislation until Dec. 31, 2009. The temporary increase will mean that consumers with larger deposits in both credit unions and banks can rest assured that their nest eggs are protected by the full faith and credit of the United States Government.