Notice of Changes in Temporary NCUA Insurance Coverage for Transaction Accounts

All funds in "noninterest-bearing transaction accounts" 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 NCUAs 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 dividend. It does not include any transaction account that may earn dividends, such as a negotiable order of withdrawal ("NOW") account, money-market account or 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 transactions accounts, visit www.ncua.gov.

Definition of Noninterest-Bearing Transactional Account:
Noninterest-bearing transaction account are defined as traditional, noninterest-bearing demand deposit (checking or share draft) accounts that allow for an unlimited number of deposits and withdrawals at any time, whether held by a business or an individual. Noninterest-bearing transaction accounts include official checks issued by insured credit unions.

However, accounts do not qualify as noninterest-bearing account if they may earn interest or dividends, such as negotiable order of withdrawal (NOW) accounts, Interest on Lawyers Trust Accounts (IOLTA), or Money Market Accounts (MMA).