Increase in insurance limits for deposits
In an effort to calm turbulent markets and strengthen Americans’ confidence in their financial institutions, on October 3, 2008, Congress passed and President Bush signed the Emergency Economic Stabilization Act (commonly known as the “Bailout Bill”). While all the impacts of the bill are yet to be seen, one aspect of the bill directly benefits anyone who has money on deposit at a credit union or bank.

Title I, Section 136 of the bill temporarily raises the limits on federally guaranteed insurance for deposits and shares from $100,000 to $250,000. This increase is in effect until December 31, 2009. Money on deposit with a credit union is insured by the NCUA (National Credit Union Administration), and this insurance is backed by the full faith and credit of the United States Government.

For more details on insurance coverage and limits, visit the website of the National Credit Union Administration.