ST. LOUIS (7/30/08)--Anheuser-Busch Employees CU provided consumers examples of just how safe deposits are in credit unions by explaining different types of coverage in an article in the St. Louis Post-Dispatch
(July 27). The article noted that insurance provided by the National Credit Union Administration and the Federal Deposit Insurance Corp. "may be the best sleep aid around" because there's "no reason to worry" about money that's federally insured. David Tate, vice president of operations at the $910.5 million asset credit union, provided examples of how a consumer's accounts are insured:
* An account in a husband's name only is insured for $100,000. His wife's separate account is also insured for another $100,000; * Their joint account is insured up to $200,000--or $100,000 each; * If the husband is a trustee in a testamentary revocable trust for the wife, the account is insured for $100,000. If the wife has an account titled as a testamentary revocable trust for the husband, it's insured for $100,000.
Total insurance for all these accounts is $600,000, but Tate explained that adding accounts that are payable on death (POD) to dependents, such as children, would mean a husband and wife who have a POD account for their two children could qualify for $400,000 in insurance--or $100,000 for each spouse and child. Tate also addressed issues related to the death of one spouse, individual retirement accounts, and the addition of a second account owner.