Insurance on Noninterest-Bearing Transaction Accounts

Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 provided temporary unlimited share/deposit insurance coverage on all noninterest-bearing transaction accounts in federally insured credit unions and banks. Generally, this refers to noninterest-bearing share draft/checking accounts with funds in excess of $250,000.

The unlimited share/deposit insurance coverage on noninterest-bearing accounts expired on December 31, 2012. Insurance coverage on noninterest-bearing transaction accounts will return to the permanent level of up to $250,000 beginning January 1, 2013. In other words, noninterest-bearing transaction accounts will be subject to the same insurance coverage levels as all other share accounts in a credit union.

Estimate the insurance coverage on your accounts with NCUA’s Share Insurance Tool Kit at the NCUA website