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Excess Share Insurance Phase Out

Austin Telco Federal Credit Union (ATFCU) strives to offer our members the best products and services available.  In 2007 we began offering supplemental deposit insurance of up to $250,000 through Excess Share Insurance Corporation (ESI); a private deposit insurer.  This excess coverage was in addition to the National Credit Union Administration (NCUA) federal deposit insurance coverage provided by the National Credit Union Share Insurance Fund (NCUSIF).

The maximum aggregate deposit insurance coverage offered by ESI is $55 million per credit union. Having seen record growth, we quickly reached the $55 million coverage limit.  Since ESI is the only private deposit insurer available to federal credit unions, ATFCU has no control over the aggregate coverage limit and no access to additional excess insurance coverage.

Our exceptional growth has put ATFCU in the top 3% in asset size of all credit unions in the United States.  This growth can be attributed to the faithful support of our loyal members and the trust you place in us every day to provide competitive rates, superior service, and a very safe and sound financial institution. Since this is a service we are no longer able to provide to all members because of ESI’s $55 million limitation, ATFCU has decided to phase out the additional coverage.

As of April 1, 2008 Austin Telco F.C.U. no longer offers ESI coverage on any new money deposited in the credit union. Members currently covered under the excess insurance will continue to be covered based on the ending balance in their account(s) as of March 31, 2008; this coverage will continue for a period not to exceed five (5) years. New deposits and/or increases in balances due to dividends will not be covered under ESI’s excess share insurance.  Balances that decreased after April 1, 2008, will be covered based on the new lower balance through March 31, 2013.  As always, accounts will continue to be federally insured through the NCUSIF up to at least $250,000.

If you have any questions regarding the status of ESI coverage on your accounts, or to determine if any additional coverage may be available through the NCUSIF by restructuring some of your account relationships, please contact Pamela Cotton at 512.302.5555 x 7353.


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