Federal Deposit Insurance

Your savings are safe at Alabama Credit Union

Have questions about the NCUA or ESI deposit insurance coverage that -- in addition to Alabama Credit Union's strong financial health and excellent regulatory ratings -- protects your savings? Here is what you need to know:

  • Alabama Credit Union is financially strong and healthy, and a safe place for your savings. We have received state and federal regulators' top ratings for 21 consecutive years. Despite the challenges many lenders are facing with sub-prime mortgage defaults, Alabama Credit Union has built its mortgage lending portfolio with carefully underwritten mortgage products, using reasonable industry-standard guidelines for borrowers' debt ratios, credit scores and property values. We are pleased to say we expect no unusual delinquency from our consumer or mortgage lending portfolio, and our delinquency ratio is at a historically low level (significantly less than peer average).
  •  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.
  • We do not do any business with Lehman Brothers, AIG, or Goldman Sachs. And, Alabama Credit Union is regulated to investing only in Federal government securities, which have no risk of default. We cannot invest in stocks or bonds of individual companies, nor in mutual funds. Our loans are to our members only, and are primarily auto, signature, credit card and mortgage loans.
  • Federally insured credit unions are a safe place to deposit, as you'll read here:
  • Your savings are primarily insured by National Credit Union Administration, an agency of the U.S. Government, through the National Credit Union Share Insurance Fund (NCUSIF). Most properly established share accounts in federally insured credit unions are insured up to the Standard Maximum Share Insurance Amount (SMSIA) that was increased to $250,000; certain retirement accounts, such as IRAs and Keoghs, are additionally insured up to $250,000. Learn more about NCUA's federal deposit insurance coverage and what it means to you:
  • In addition to NCUA's federal deposit insurance coverage, your savings at Alabama Credit Union may be covered by Excess Share Insurance (ESI). This private insurance coverage is paid by Alabama Credit Union and provided so that members may invest with confidence in amounts in excess of the NCUA federal deposit limits. ESI's $250,000 per account of excess coverage continues in addition to the NCUSIF's increased insurance limit of $250,000 for retirement accounts, which was effective April 1, 2006. Credit unions with excess coverage are now provided total deposit insurance protection of $500,000 on IRAs.

Here's a statement from Dennis Adams, President/CEO of Excess Share Insurance: "Excess Share Insurance Corporation (ESI) is a property and casualty insurance company licensed in the State of Ohio and 32 other states. ESI has always been and continues to be in good standing with insurance departments and regulators in all states of operations.  The corporation has operated safely and soundly, and has been financially stable since its incorporation in 1993. ESI provides up to $250,000 of additional protection on member share (deposit) accounts.  By adding this coverage to the credit union’s primary insurance limits, individual members can take comfort in knowing their funds are safe and secure.  ESI serves credit unions…and only credit unions! Annually, ESI’s financial statements are audited by a nationally recognized “Big 4” CPA firm and its loss reserves are certified by internationally recognized actuaries. The corporation maintains various committed lines of credit and reinsurance from national firms, which further strengthens its financial position."

If you have any questions concerning your credit union’s excess insurance coverage, please visit www.excessshare.com, or call 800.521.6342. You can also submit your questions via e-mail at mail@excessshare.com.