If your savings is at a credit union I want you to listen up right now. Most credit unions are just as safe as an FDIC-insured bank account, but as I explained in an earlier Suze Scoop the wise move to make in these scary times is to double check that you are absolutely 100% protected.

Okay, first let me explain a few things about Credit Unions. Just like banks choose to participate in the FDIC program, credit unions have the choice to participate in the federal credit insurance program. Its official name is the National Credit Union Share Insurance Fund (NCUSIF). This insurance program is managed by the National Credit Union Administration, and was created by Congress in 1970. Since its creation no insured credit union account has lost a penny. Federally insured credit unions are backed by the full faith and credit of the U.S. government. So if you have your money at a federally insured credit union and your don’t exceed the insurance coverage limits, your money is super safe.

Okay, here’s how to figure that all out. First, I want you to check that your credit union is indeed a member of the NCUSIF. You will see the logo on its website homepage, or check your latest statement. If your credit union is not federally insured, I suggest you move your money to a federally insured bank or credit union. Given what is going on in the markets and the economy right now, I think it is wise to err on the side of being super safe.

If your credit union is federally insured, and you have less than $250,000 (new limit as of October 2008)* deposited at the bank you can officially stop worrying. Your money is safe. Even if something happens to the credit union, the NCUSIF will step in and make sure you receive every penny of your money.

If you have more than $250,000 (new limit as of October 2008)* at a single credit union you probably know the drill by now: the money may be insured if your accounts meet NCUSIF rules. Again, it’s all very similar to the same rules that govern FDIC bank insurance. I encourage you to use the NCUA’s Share Insurance Estimator to verify that all your accounts, and all the money in those accounts are 100% insured.

Now you know. Be safe.

Suze

* The NCUA insurance increase to $250,000 is temporary at this point—only valid through DECEMBER 31, 2009.