New Investment Option: Federally-Insured Deposit Account

Frequently Asked Questions

 
Quick Answers to Your Questions
 
1. Do I need to be a member of the State Employee's Credit Union (SECU) to select the Federally-Insured Deposit Account as an Investment Option? Membership in SECU is not required. As one of the 14 Investment Options in the NC 529 Plan, the Federally-Insured Deposit Account Investment Option is available for selection as an Investment Option by anyone who opens or already owns an NC 529 Account.
 
 
2. If I am not a member of SECU, will I become a member by selecting the Federally-Insured Deposit Account as an Investment Option? No. Selecting the Federally-Insured Deposit Account as an Investment Option does not make you eligible for SECU membership.
 
 
3. What is the federal deposit insurance on the Federally-Insured Deposit Account? Both the principal and earned interest in the Federally-Insured Deposit Account are insured by the National Credit Union Administration (NCUA), a government agency that is backed by the full faith and credit of the United States government.
 
 
4. I'm a member of SECU, and have account(s) at SECU. Will the Federally-Insured Deposit Account's NCUA insurance affect the NCUA insurance of my SECU accounts? No. The NCUA insurance of the Federally-Insured Deposit Account is considered separately and will not affect the NCUA insurance of any personal account(s) you may have with SECU. The money you allocate to the Federally-Insured Deposit Account Investment Option through your NC 529 Account will not count towards the NCUA insurance coverage limits on other SECU account(s) you may own.
 
 
5. Is there a cap or limit on the amount of NCUA insurance coverage for the Federally-Insured Deposit Account? No. There is no cap or limit on the NCUA insurance coverage for this Investment Option. The full amount of principal and earned interest in the Federally-Insured Deposit Account is insured by the NCUA.
 
 
6. Will this insurance cover other Investment Options I have in my NC 529 Account? No. Only the principal and the earned interest in the Federally-Insured Deposit Account Investment Option are covered by NCUA insurance..
 
 
7. Where can I get more information about the Federally-Insured Deposit Account Investment Option? For more information, please see the "INVESTMENT OPTIONS - FEDERALLY-INSURED DEPOSIT ACCOUNT" section of the NC 529 Plan Program Description.