At BFCU, our top priority is safeguarding your hard-earned money. As a certified member of the National Credit Union Associaton (NCUA), we guarantee your money is insured, and with the additional coverage through MSIC, we go above and beyond to provide 100% protection for all your deposits, regardless of their balance.

With our commitment to your financial security and a proactive approach to risk management, we assure you peace of mind now and in the future.

This article will explain simply and clearly why BFCU is safe, why it is necessary to always deposit your money into a federally insured credit union or bank, and how you’d get paid if BFCU closed.

Extra Protection With MSIC Insurance

At BFCU, we understand the concern, especially recently, of consumers fearful of losing their funds in what they thought to be safe harbors for their wealth. That’s why we are committed to ensuring your deposits are well-protected.

We have partnered with the Massachusetts Share Insurance Corporation (MSIC) to provide extra insurance coverage beyond the standard NCUA Insurance (which we detail in the next section). With MSIC Insurance, BFCU offers peace of mind to our members, knowing that 100% of their deposits, regardless of the balance, are protected. This means that even if a member’s account balance exceeds the $250,000 coverage provided by NCUA insurance, their funds will still be secure under MSIC insurance. 

Here are some key benefits of MSIC Insurance:

• Offers 100% coverage for all deposit balances.

• Provides extra protection on top of NCUA insurance.

• Enhances BFCU’s commitment to the security of its member’s funds.

In short, the MSIC insurance BFCU purchases protects our member’s funds. Because of this, combined with the NCUA insurance we will go over next, BFCU is in a stronger position to safeguard your wealth over generations. 

Your Money Is Safe: BFCU Is NCUA Insured

On top of MSIC, BFCU is an insured member of the NCUA. This means BFCU follows the laws and regulations put into place by the NCUA to keep its financial deposits secure. 

It also guarantees that if BFCU ever were to close (which is highly unlikely), NCUA would recover it.

In light of some recent issues 2 banks have had, we want to make it extremely clear that BFCU is a safe, sound, confident financial institution you can rely on. The NCUA helps regulate and maintain that confidence so you can have the peace of mind that your money is safe.

Here are some reasons why it is significant BFCU is insured by the NCUA:

• The NCUA maintains the strength and stability of the entire credit union system

• As a member of the NCUA, BFCU adheres to their rules and regulations

• In the unlikely event BFCU were to close, the NCUA would oversee the liquidation, settle members’ insurance claims, and try to recover BFCU’s assets

• All BFCU members are insured with $250,000 in coverage for their single ownership accounts (this is the same value the FDIC gives to members of all insured banks)

• The NCUA works to notify BFCU and its other members of potential frauds

As a member of the National Credit Union Association, BFCU is supervised, secured, regulated, and insured against financial struggles. While we don’t expect to have any financial hiccups, we are prepared for anything in the future.

Also - no member of a NCUA federally insured credit union has ever lost a penny.

The Difference Between The NCUA And The FDIC

What’s the difference between being NCUA insured and FDIC insured? 

Well, the main difference lies in who is being insured. The National Credit Union Association (NCUA) insures credit unions while the Federal Deposit Insurance Corporation (FDIC) insures banks.

NCUA Explained Simply

The NCUA is an independent federal agency that insures deposits at federally insured credit unions, it charters and regulates credit unions, and it protects NCUA members who own credit unions. The NCUA identifies, monitors, and reduces risks to the National Credit Union Share Insurance Fund.

The NCUA are the big guys that protect, supervise, and insure credit unions.

The NCUA is overseen by a 3-member Board of Directors who are appointed by the President of the United States and confirmed by the Senate. No more than 2 members can be from the same political party.

FDIC Explained Simply

How is the NCUA different from the FDIC? Well, the FDIC is also an independent agency created by Congress to maintain confidence and stability in the United State’s financial system, but they supervise financial institutions, insure deposits, and manage receiverships for banks.

The FDIC is overseen by a 5-member Board of Directors who are appointed by the President of the United States and confirmed by the Senate. No more than 3 members can be from the same political party.

Below is a chart to demonstrate how the NCUA’s roles and the FDIC’s roles compare.

What The NCUA Would Do If BFCU Closed

While we in no way predict BFCU going bankrupt, we have prepared for the worst so you can have confidence that your money is safe with us. In the tragic event BFCU were to close, the NCUA will take over the liquidation of funds and resolve the credit union.

Your accounts are protected up to $250,000 per person per ownership category.

The same allotment is insured for those who have deposited into banks insured by the FDIC.

BFCU member accounts that are insured by the NCUA include:

• Savings

• Share drafts (checking)

• Money markets

• Share certificates (CDs)

• Individual Retirement Accounts (IRA)

• Revocable Trust Accounts

The NCUA has a hard limit of insuring $250,000 per depositor per institution. If you’d like to insure more than $250,000 by NCUA, you’ll want to deposit your money in various NCUA institutions in $250,000 maximum allotments.

Conclusion

You now understand why it is so important to always partner with a credit union or bank insured by the NCUA or FDIC. You can also have the peace of mind that BFCU is MSIC insured as well as  NCUA insured and that your money is safe with us. For any questions feel free to reach out and we’ll be happy to talk!