 Checking
credit union deposit insurance
|  Dear
Dr. Don,
I am trying to find a risk-safety rating on Provident
Credit Union in California and cannot seem to find any. Where can
I obtain this? Perhaps they are new or have a low or bad rating?
Also if one has $100,000 accounts in different
credit unions are they each insured to $100,000? Thank you.
-- Ann Accumulate
 Dear
Ann,
Bankrate's Safe
& Sound rating feature tracks credit unions, too! I found
only one listing for Provident in California. It is Provident in
Redwood City, Calif. You can get a memorandum on Provident's rating,
or take a peek at its financial statements using Safe & Sound,
on Bankrate.
Provident has a four-star (out of five) Safe &
Sound rating and a capitalization, asset quality, earnings and liquidity,
or CAEL, rating of 2, with a CAEL rating of 1 being the highest.
This Bankrate page, "What
does CAEL mean," explains these two ratings in greater
depth.
The insurance fund for credit unions is the National
Credit Union Share Insurance Fund, or NCUSIF. Like FDIC-insured
deposits, NCUSIF-insured deposits are backed by the full faith and
credit of the United States government.
A credit-union member that has share accounts
in two or more different insured credit unions would have up to
$100,000 in insured funds in each credit union. The National Credit
Union Administration, or NCUA, has an electronic brochure, Your
Insured Funds, that explains the insurance program in greater
depth.
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