Fact Sheet: National Credit Union Share Insurance Fund


The National Credit Union Share Insurance Fund (NCUSIF) is the federal fund created by Congress in 1970 to insure member's deposits in credit unions up to the $100,000 federal limit. Administered by the National Credit Union Administration, the NCUSIF is backed by the "full faith and credit" of the U.S. Government.

How the Fund is financed

The NCUSIF maintains at or near 1.30 percent of federally insured credit union deposits. By law, federally insured credit unions maintain 1 percent of their deposits in the NCUSIF and the NCUA Board can levy a premium if necessary. Credit unions voluntarily capitalized the Fund in 1985 by depositing 1 percent of their deposits into the Fund. Since then, the NCUA Board has charged only one premium, when three large New England credit unions failed in 1992 substantially increasing insurance losses. No federal tax dollars have ever been placed in the credit union financial Fund, and non member has ever lost money insured by the NCUSIF.

Record low losses, record high earnings

In 1997, the NCUSIF broke success records. Matching the primarily strong economy and the good health of credit unions, the financially sound NCUSIF ---

  • Paid its third consecutive and largest case dividend -- $108 million;
  • Posted record earnings -- $204 million before expenses;
  • Saw a record low eight involuntary liquidations and eight assisted mergers;
  • Ended 1997 at the maximum statutory equity level of 1.3 percent; and
  • Received Treasury's support for its operations.