Your Savings At USA Federal Credit Union Are Federally Insured

FOR IMMEDIATE RELEASE

San Diego, Calif., July 22, 2008 – Media coverage over the last few days has resulted in attention on deposit insurance and the effect of heavy investing in subprime mortgages.

We understand that there has been volatility in the financial industry and many of you are concerned about the health of your account. Your funds are federally insured and backed by USA Fed’s solid financial standing and our affiliation with the National Credit Union Association (NCUA). NCUA considers USA Federal a well-capitalized credit union.

Your deposits are insured and administered by the National Credit Union Share Insurance Fund (NCUSIF), an arm of NCUA, established by Congress in 1970 to insure member deposit accounts at federally insured credit unions. Your share insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation (FDIC).

Most accounts are federally insured to at least $100,000, with retirement accounts (IRAs) being insured separately up to $250,000. You may have additional coverage on multiple accounts based on different account ownership.

The NCUA released the following information on July 14, 2008 from NCUA Chairman Joann Johnson that shows that the credit union share insurance system is in good shape:

www.ncua.gov/news/press_releases/2008/MR08-0714.htm

These additional resources contain helpful details on your deposit insurance coverage and the stability of the National Credit Union system and NCUSIF.

• NCUA’s Share Insurance Web page: www.ncua.gov/ShareInsurance/Index.htm
  
  
• NCUA’s Share Insurance Estimator: http://webapps.ncua.gov/ins/

NCUA Publications

• How Accounts Are Insured - (1.22 MB PDF)
• Your Insured Funds - (651 KB PDF)

Credit Union National Association

• CUNA: America’s Credit Unions – Secure, Strong! Read the facts - (82 KB PDF)

USA Federal Credit Union has never participated in subprime mortgage lending and remains a safe and secure place for depositors and borrowers. As a nonprofit institution owned by members, USA Fed makes solid business decisions based on what is best for the membership. In contrast, Banks, owned by stockholders, make decisions benefiting stockholders, not customers.

Thank you again for placing your trust in USA Federal Credit Union. We look forward to assisting you with your financial needs now and in the future. Please contact us at (800) 220-1872 with any questions.

     Founded in 1953 at the Naval Training Center in San Diego, USA Federal offers a full range of financial services, including business services and consumer savings, checking, mortgage and home equity loans, auto loans, debit and credit cards, share term certificates, IRAs and a 24-hour phone center.
     Online services include eStatements, QuickConnect Online and Bill Pay, as well as online loan applications and approval. Additional services include the BALANCE financial fitness program and investment and retirement planning offered by MEMBERS Financial Services.
     With more than 59,000 members and over $700 million in assets, USA Federal Credit Union operates 22 branches, including locations in San Diego and Riverside Counties, Las Vegas, Japan and Korea. Members of the non-profit financial cooperative include the military, civilians and select employee groups.
     USA Federal Credit Union is federally insured by the National Credit Union Administration. For more information, call (800) 220-1USA or visit www.USAFedCU.org.

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Note: USA Federal maintains the above information for archival purposes, which is presumed accurate upon release, however, data may become outdated over time and affect accuracy.