Extended Deposit Insurance
Safeguard your deposits up to $15 million¹. We have partnered with deposit-sharing network ModernFi to offer our members millions of dollars in extended deposit insurance from the National Credit Union Administration (NCUA).
How Does it Work?
An Extended Insurance Account provides millions in extended NCUA insurance on your accounts by distributing your balance in amounts under the $250,000 threshold to partner credit unions. By placing funds under the limit at each credit union, your entire balance can be insured by the NCUA’s Share Insurance Fund.
Benefits of Extended Deposit Insurance
Our automated sweep system distributes your balance across partner credit unions to protect your funds.
How Do I Open an Extended Insurance Account?
FAQs
ModernFi is a network of credit unions that Inspire Federal Credit Union has joined to help better protect your balances by distributing funds across partner credit unions to offer extended NCUA share insurance.
Suppose you have $1 million that you want to safeguard and earn interest on. You can achieve this by accounting the full amount with Inspire Federal Credit Union through an Extended Insurance Account. The money is then distributed into smaller portions and placed in demand account accounts at various credit unions within the network. The first $250,000 will be allocated to Inspire Federal Credit Union, another $250,000 to Credit Union 2, an additional $250,000 to Credit Union 3, and the remaining $250,000 to Credit Union 4. All of these credit unions are partnered with the ModernFi Network. This allocation helps ensure that each dollar is covered by NCUA share insurance, in an amount up to the maximum of $250,000 per share owner per credit union.
Using these Extended Insurance Accounts eliminate the need to keep track of multiple accounts at various credit unions. All of your accounts and activity across your allocated credit unions are consolidated into one statement. Additionally, the Extended Insurance Account interest rate is competitive, making it a compelling choice for individuals and businesses with substantial cash reserves.
You control the account just like a regular transaction account. You can account, withdraw, or transfer funds at any time through a dedicated Member Portal. Inspire Federal Credit Union and ModernFi manage and oversee your allocation, ensuring funds are distributed to demand account accounts within the network.
Extended Insurance Accounts offer a high degree of security for your accounts, utilizing NCUA insurance to safeguard funds up to $250,000 per member at each participating credit union. This protection extends even in the event of a participating credit union’s failure, ensuring the continued safety of your accounts. Since the inception of the National Credit Union Share Insurance Fund in 1970, no member has lost NCUA-insured funds due to a credit union’s failure. All accounts at NCUA-insured credit unions are covered on a dollar-for-dollar basis, encompassing principal plus any interest accrued.
In the unlikely event a credit union fails, the NCUA assumes the responsibility of closing the credit union, receives its assets, and settles all account claims. Inspire Federal Credit Union works with ModernFi to file all required materials with the NCUA to coordinate the receipt of your funds from the failed institution. Payment starts within a few business days after the credit union closure. For more information on NCUA insurance, please visit here.
Opening an Extended Insurance Account is quick and easy with Inspire Federal Credit Union. Simply contact your business relationship manager or visit your nearest branch to open an account and start taking advantage of the benefits offered by the Extended Insurance Account.
After account opening, you will gain access to the “Member Portal” to view details on your Extended Insurance Account. You can view statements and your allocations throughout the network at any time, so you always know your money is safe with credit unions you know and trust.