How do Extended Insurance Accounts work?

Suppose you have a member with $1 million in deposits that wants to be fully federally insured. Using an Extended Insurance Account, you can provide the member with a single account that will ensure their funds are fully covered.

To insure balances in the Extended Insurance Account, funds are distributed to other credit unions in the ModernFi network in increments not exceeding the $250,000 Standard Maximum Share Insurance Amount offered by the NCUA’s Share Insurance Fund. In this example, the first $250,000 will be allocated to one credit union, another $250,000 to a second credit union, an additional $250,000 to a third credit union, and the remaining $250,000 can stay with your credit union. By placing less than $250,000 at each credit union, the entire account balance can be insured by the NCUA’s Share Insurance Fund.

Using Extended Insurance Accounts allows your credit union to attract and retain large-value members such as businesses, public funds, and higher-net-worth individuals. For your members, it eliminates the need to keep track of multiple accounts at various credit unions. All transaction activity and network allocations are consolidated into one simple statement for members.