A SIMPLIFIED LOOK AT UNDERSTANDING DEPOSIT INSURANCE

We have been getting a lot of questions from members about how well deposits are insured at Coastal. Here is an easy breakdown of what is insured, with examples to illustrate how deposit insurance works. It may help if you think of deposit insurance as covering 4 unique "buckets": individual accounts, joint accounts, IRAs and trusts, with each bucket only being able to hold a limit.

• The sum total of all of a member's individual accounts is insured by the NCUA Share Insurance Fund up to $250,000.
• Additionally, the sum total of a member's share* of all of their joint accounts is insured up to another $250,000. (* For insurance purposes, members have equal ownership of joint accounts. 2 owners would each own 50%, 3 owners would each own 33.3%, and so on.)
• Likewise, trust accounts are insured up to $250,000 for each unique owner/beneficiary relationship.
  • However, if you have less than $1.25M and 5 or fewer beneficiaries, coverage is not limited by each beneficiary's proportional interest. (Ex: with 4 beneficiaries, coverage is $1M, regardless of how it's allocated.)
  • If you have more than $1.25M and more than 5 beneficiaries, proportional interest applies.
• Finally, IRAs are separately insured to $250,000.

Keep in mind; this is a very simplified way of looking at share insurance. The regulations surrounding the NCUASIF are very complex, and the best way to determine how much you are insured for is to use NCUA's share insurance estimator.

Of course, please don't hesitate to ask our associates for assistance.

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