Dear Dr. Don,
I have $400,000 in one CD invested in a credit union in Las Vegas. The CD matures on Jan. 7, 2010.

The credit union is not in good financial shape right now and is considered undercapitalized by a credit union analyst. Should I remove my money when the CD matures?
— Pearl Pecuniary

Dear Pearl,
I would if the shares aren’t fully covered by share insurance. I wouldn’t advise any consumer to keep shares in a credit union account above the limits of the National Credit Union Share Insurance Fund, or deposits in excess of Federal Deposit Insurance Corporation limits.

The National Credit Union Administration, or NCUA, has what it calls the Electronic Share Insurance Calculator (E-SIC). This calculator lets you input account information and calculates the portion of your shares insured and uninsured.

You can follow your credit union’s safety rating on Bankrate using its Safe & Sound star rating system. I checked and your credit union has a one-star safety rating, which puts it in the lowest-rated category. That would be OK if your shares were fully insured, because NCUSIF-insured shares are backed by the full faith and credit of the U.S. government.

There’s no upside in taking the risk on uninsured shares or deposits. There’s really no upside in a financial adviser advising you to keep your uninsured shares on deposit. Find a new home for some of the money.

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