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Your Funds in Alliant Credit Union are Safe and Secure

July 15, 2008 | Alliant Credit Union

As news reports tell of other financial institutions showing signs of distress, it’s important to know that Alliant remains safe, secure, and financially strong.

 

How financially stable is Alliant Credit Union? 

  • As several recent news events have raised concern about the health of financial institutions in general, it's important to know that Alliant is a conservatively managed, fiscally sound, independently operated financial institution. 
  • Alliant was recently examined by both federal and state regulators, and again received amongst the highest rating possible for safety and soundness.
  • Over the years, Alliant has built up capital to more than $625 million, resulting in a net-worth (a key measure of financial strength) currently at 12% - almost double the amount required by regulation and much higher than what most banks maintain.
  • Alliant did not engage in subprime lending or engage in other risky loan practices that have led to losses at many lenders. 
  • We invest only in a diversified portfolio of highly rated, liquid securities and deposit instruments, and continuously monitor credit quality and market conditions.
  • Our effort to expand and diversify our membership has resulted in no single sponsor group representing more than 30% of the membership.
  • Alliant’s highly efficient cost structure provides a great advantage, particularly in a challenging financial market.  Because our operating expenses are so low, we don’t have to “stretch” for risky income; we can operate more conservatively, and still provide exceptional rates and services to our membership.

For additional financial information on Alliant, we invite you review our 2007 Annual Report and current financial statement.

 

Are my funds insured?

Membership in Alliant comes with many benefits, one of which is Share Insurance Protection. Your savings are federally insured to at least $100,000 and backed by the full faith and credit of the United States Government by the National Credit Union Administration (NCUA), a federal agency which administers the National Credit Union Share Insurance Fund (NCUSIF). Share insurance is provided to protect your funds from loss due to the highly unlikely event of a financial failure of Alliant. Not one penny of insured savings has ever been lost by a member of a federally insured credit union.

How do I get more information about Share Insurance?

For your reference, please refer to Your Insured Funds and How Your Accounts Are Insured, the NCUAs official publications regarding share insurance. You may also wish to visit the NCUA web site, www.ncua.gov, where you can learn more about share insurance, and estimate your share insurance coverage using the share insurance estimator.

 

Frequently Asked Questions

Q:  What is the basic NCUSIF share insurance coverage??

The basic insured amount for a credit union member under current law is at least $100,000. IRA accounts (Traditional, Roth and SEP) are insured to $250,000. Share accounts maintained in different rights or capacities, or forms of ownership, may each be separately insured up to $100,000. Thus, a member may hold or have an interest in more than one separately insured share account in the same insured credit union. 

 

Q:  What types of accounts are insured??

All types of member share accounts and deposits received by the credit union in its usual course of business, including regular shares, share certificates, IRAs, Coverdell ESAs and share draft accounts are insured. Investment products offered by a credit union to its members, such as mutual funds, annuities, and other non-deposit investments are not insured by the NCUSIF. 

 

Q:  Is NCUSIF share insurance coverage increased by placing funds in two or more of the same kind of share accounts in the same credit union??

No. NCUSIF share insurance is not increased merely by dividing funds owned by the same person or persons into one or more of the different kinds of share accounts available. For example, a regular share account, a share draft account and a share certificate account owned by the same member are added together and insured up to $100,000. Insurance can be increased by opening a different type of account - one that is held in a different right and capacity. For example, insurance on a single ownership account is separate from insurance on a joint account. 

 

Q:  If a member has accounts in several different insured credit unions, will the accounts be added together for the purpose of insurance coverage??

No. The maximum insurance of $100,000 is applicable to share accounts in each insured credit union. A member who has share accounts in two or more different insured credit unions would have up to $100,000 insurance in each credit union. In the case of a credit union having one or more branches, the main office and all branch offices are considered as one credit union.

Source:  www.ncua.gov


© 2008 Alliant Credit Union. All Rights Reserved.

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