Savings in all Michigan Credit Unions are federally insured by the strongest consumer deposit insurance fund in America — the NCUSIF. The NCUSIF is administered by the National Credit Union Administration, an agency of the federal government. This fund insures your savings up to $100,000. Credit Union Individual Retirement Accounts (IRAs), Keogh and Deferred Compensation Accounts are insured separately up to $250,000. Credit Unions are required to provide this coverage, but must meet stringent standards to qualify for it.

Not one penny of insured savings has ever been lost by a member of a federally insured credit union. The federal insurance fund has several programs to help insured credit unions which may be experiencing problems, and liquidations or failures are usually done only as a last resort. If a federally insured credit union does fail, however, the National Credit Union Share Insurance Fund (NCUSIF) will normally make any necessary payouts within two weeks of the time the credit union closes its doors.

Insured credit unions are required to deposit and maintain 1% of their insured shares in the NCUSIF. The fund is currently at the strongest and best reserved level in its history. Historically, deposit insurance funds strive for a ratio of equity to insured savings of a least 1%. NCUSIF ratio of equity to insured savings ranges from 1.25% to 1.30%.

As a member of Option 1 Credit Union, you do not pay directly for your share insurance protection. Option 1 Credit Union pays into the NCUSIF a deposit based on the total amount of insured shares in the Credit Union.