Knoxville Teachers Federal Credit Union
How your shares are insured
Your shares at Knoxville Teachers Federal Credit Union are federally insured.
Share insurance coverage is provided by the National Credit Union Administration (NCUA), an independent government agency that charters, regulates, and insures federal credit unions. Your shares are backed by our own solid financial standing. However, the insurance protects members against loss if any federal credit union fails.
Knoxville Teachers Federal Credit Union’s deposits are insured for up to $250,000.
Individual Accounts
Individual accounts are owned by one member. You are insured for up to $250,000 for combined balances in your Knoxville Teachers Federal Credit Union account.
Insurance Coverage Example
Account owner: John Smith
Amount of insurance coverage: $250,000
Joint Accounts
Joint accounts are owned by two or more members, to include your Knoxville Teachers Federal Credit Union savings and checking, each owner on the account is insured for up to $250,000. The most federal insurance coverage any member can have as a result of joint ownership is $250,000, regardless of the number of joint accounts he or she co-owns.
Insurance Coverage Example
Primary owner: Mark Doe
Joint owner: Susan Doe
Amount of insurance coverage: 2 owners x $250,000 = $500,000
Other types of Knoxville Teachers Federal Credit Union accounts that receive NCUA insurance coverage up to $250,000:
TAX SHELTERS (IRAs, ROTH IRAs, DCP 457)
IRAs are personal savings plans that allow you to set aside money for retirement. The combined balances of all the accounts in your Traditional, Simplified Employee Pension (SEP), Roth IRA plans AND DCP 457 are insured separately from your other Knoxville Teachers Federal Credit Union accounts for up to $250,000.
Education Savings Accounts (ESAs)
ESAs allow you to make contributions toward a child’s education. ESAs are insured separately from your other Knoxville Teachers Federal Credit Union savings accounts for up to $250,000.
Custodial Accounts
The combined balances in a minor’s custodial account (an account established under the provision of the Uniform Transfers to Minors Act) are insured separately from funds the minor or custodian has in other Knoxville Teachers Federal Credit Union accounts, and receive separate insurance coverage for up to $250,000.
Estate Accounts
A Knoxville Teachers Federal Credit Union Estate Account is a special savings and/or checking account in which a deceased member’s assets are deposited and subsequently withdrawn by the estate administrator. The combined balances in Estate Accounts are insured separately from any personal accounts the estate administrator may have at Knoxville Teachers Federal Credit Union, for up to $250,000.
Accounts Opened by Associations of Knoxville Teachers Federal Credit Union Members
Association accounts are insured separately from your personal accounts at Knoxville Teachers Federal Credit Union. The combined balances in an association’s account(s) are insured for up to $250,000.
Knoxville Teachers Federal Credit Union also offers account options that provide additional share insurance coverage.
Payable on Death (POD) Accounts
POD Accounts allow you to designate beneficiaries on an account. POD Accounts are insured separately from your other Knoxville Teachers Federal Credit Union accounts. Each owner is insured for up to $250,000.
Insurance Coverage Example
Individual POD Account
Account name: John Doe
Beneficiary: Granddaughter
Amount of insurance coverage: 1 owner x 1 beneficiary = $500,000
Joint Owner POD Account
Account name: John Doe Primary owner: John Doe
Joint owner: Susan Doe
Beneficiaries: Son and daughter
Amount of insurance coverage: 2 owners x 2 beneficiaries = $1,000,000
Deposit Trust Accounts
Deposit Trust Accounts are depository accounts that can hold funds designated by a legal trust. Deposit Trust Accounts are insured separately from your other Knoxville Teachers Federal Credit Union accounts. Each grantor is insured for up to $250,000 per beneficiary established under the trust arrangement.
Insurance Coverage Example
Deposit Trust Account, Example #1
Account name: Doe Family Trust
Grantor: John Doe
Beneficiaries: Doe Family Trust
Amount of insurance coverage: 1 grantor x 1 beneficiary = $250,000
Deposit Trust Account, Example #2
Account name: Doe Family Trust
Grantor: Susan Doe
Beneficiaries: Doe Family Trust
However, the application reflects that the beneficiaries indicated in the legal trust are identified as five (5) grandchildren.
Amount of insurance coverage: 1 grantor plus 5 beneficiaries = $1,250,000