To help answer any questions you may have about Los Angeles Police Federal Credit Union’s financial strength and your account insurance, we wanted to provide this informational FAQ (frequently asked questions). Should you have any questions that aren’t answered in this document, please feel free to call 877-MY-LAPFCU (877-695-2732).
Q. How financially secure is LAPFCU?
A. Very. In the recent sub prime lending debacle, we didn’t lose any of our members’ assets as a result of solid lending and underwriting guidelines. Also, we only lend to the LAPD family, we don’t purchase loans and we don’t make risky loans. So, our lending practices are secure as well.
Finally, we are well-capitalized and have nearly double the capital reserves recommended by the NCUA.
Q. Where does LAPFCU invest?
A. LAPFCU’s investment policy is one of fiscal prudence. It is based on a concept called SLY -- Safety first, Liquidity second and Yield third. As a result of this policy, LAPFCU does not invest in anything that is high risk – 70% of our assets are invested back within our membership via loans to our members. The remaining assets (roughly 28%) are invested in U.S. Government Agency Securities (100% backed by the government) and corporate credit unions.
Q. What kind of account insurance does LAPFCU provide?
A. LAPFCU deposits are insured up to $250,000 by the National Credit Union Association’s (NCUA) National Credit Union Share Insurance Fund (NCUSIF), which is backed by the U.S. Government. As a free benefit to members, we provide $250,000 in additional coverage on qualifying accounts through American Share Insurance (ASI).
Q. Is there a way to increase those limits?
A. There are ways in which members may structure their vesting of accounts to maximize insurance coverage. Call 877-MY-LAPFCU (877-695-2732) to learn more.
Q. If I have more than one LAPFCU account, are the balances added together in all accounts and insured to $250,000?
A. Yes. A member's individual accounts are added together and are insured to $250,000 (if solely owned by one individual).*
Q. If two or more persons have joint account(s) LAPFCU as well as their individual accounts, is each account separately insured?
A. Yes. A person's interests in joint accounts are insured separately from individual accounts to $250,000 (provided that each person has signed an account signature card and has a right of withdrawal). The interests that a particular co-owner has in all joint accounts are combined and insured to $250,000.
Q. Where can I learn more about NCUA insurance?
A. You can learn more about NCUA insurance (which administers NCUSIF) at www.ncua.gov. There, they have an NCUA Share Insurance Estimator which is an educational resource about share insurance and gives a detailed explanation of insurance coverage.
Q. What is NCUSIF?
A. Congress established the National Credit Union Share Insurance Fund (NCUSIF) in 1970 to insure member share accounts at all federally chartered credit unions and most state chartered credit unions. NCUSIF insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation (FDIC). The NCUSIF is managed by NCUA under the direction of the three-person NCUA Board appointed by the President of the United States.
Deposits in credit unions are insured to $250,000 by NCUSIF. Like the Federal Deposit Insurance Corporation's (FDIC) Bank Insurance Fund and the Savings Association Insurance Fund, the NCUSIF is backed by the full faith and credit of the United States.
* Traditional IRA, Roth IRA and Keogh accounts are insured separately up to $250,000 from other accounts that the member maintains in the same credit union.