By Josh Jones
WASHINGTON (Oct. 1, 2008) - New legislation to be considered by the U.S. Senate tonight (and later by the House) will increase the level of federal insurance for credit union savings to $250,000.
The same legislation will do the same for savings in banks insured by the Federal Deposit Insurance Corporation (FDIC).
"Federally insured savings at credit unions will have the same level of coverage as savings in federally insured banks once this legislation is passed by the Congress," said Daniel A. Mica, president and CEO of the Credit Union National Association, the trade association for credit unions.
"News stories about the increase in federal insurance need to reflect the fact that credit unions are included in the legislation - 90 million credit union members across the nation need to know about this development," he said.
The legislation (the "Emergency Economic Stabilization Act of 2008") would increase federal savings insurance coverage from $100,000 to $250,000. The increase would be temporary, taking effect from the date of enactment of the legislation until Dec. 31, 2009.