The Helping Families Save Their Homes Act of 2009 includes a provision extending $250,000 share insurance coverage provided by the National Credit Union Share Insurance Fund through December 31, 2013. This higher level of coverage was originally set to expire December 31, 2009. Investors with deposits exceeding $100,000 will now have other time deposit options to consider that would maintain full federal share insurance up to the $250,000 threshold.
Hopefully, the $250,000 federal insurance coverage limit will be made permanent at some point in the future. It would seem very difficult to revert back to the old $100,000 insurance coverage in the future. To be clear though - the $250,000 share insurance coverage is only guaranteed through December 31, 2013 at this time.
The National Credit Union Administration (NCUA) has a good Share Insurance Tool Kit available on their web site to help credit union members understand how eligible insurance coverage is calculated. Visit http://www.ncua.gov/Resources/ShareInsuranceToolkit.aspx for information.