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PO BOX 2703 ROCKY MOUNT, NC 27802 (252) 442 - 8888 |
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Important Information for
Members A Message from Jeffery R. Jones, President / CEO Your protection under federal deposit insurance has been expanded. You should know that deposits in Freedom Federal Credit Union are federally insured by the National Credit Union Administration. NCUA insurance is backed by the full faith and credit of the United States government … just like the FDIC, which insures bank deposits. Effective October 3, 2008, NCUA deposit insurance on credit union member savings increased from $100,000 to $250,000 per account. This increase is in place until at least December 31, 2009. It seems virtually certain that the expansion will be made permanent, but that is an issue Congress will presumably address during 2009.
While the federal deposit insurance coverage has grown to $250,000 per account, it is important to be aware that your coverage can actually be much higher than that. For example, IRAs are separately insured for an additional $250,000. There are also NCUA rules that govern how account ownership arrangements can increase your coverage even further. These rules are very specific, however. It’s best that you visit www.ncua.gov for more detailed information and illustrative examples. The increase in federal deposit insurance will be very important to some Freedom members … but will be totally irrelevant to others. What I hope will be comforting to ALL Freedom members is the safety and soundness of your credit union. Freedom has no investments in the low-quality mortgage securities that have been so damaging to other financial institutions. Nor were we involved in the excesses that led to the design and production of these securities. Our financial reserves are strong as a consequence of the conservative operational philosophy employed in the past by your Board of Directors and management. During these uncertain and painful economic times, we are especially mindful of our mission to assist those who need our help. Freedom will do everything possible to cooperate with responsible members who are experiencing difficulties. If we can be of service to you in any way, please let us know. In the meantime, be sure to check out the new federal deposit insurance insurance information at www.ncua.gov.
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