Question

Roberto deposited $66,000 in various individual accounts at his local credit union. He and his wife also have a joint savings account worth $54,700.

What portion of these deposits is insured?

Answer 1

Answer:

$120,700

Explanation:

Credit unions are not usually covered by the Federal Deposit Insurance Corporation (FDIC), however they are covered by National Credit Union Administration (NCUA) up to $250,000 per depositor.

When a single person opens multiple accounts he will have this coverage on each one.

So the total sum of Roberto's individual accounts and the joint account with his wife will be covered. The total sum deposited ($120,700) will be covered by NCUA.

NCUA uses the National Credit Union Insurance Fund (NCUSIF) to insure funds, and it is backed by the US treasury.