American Share Insurance (ASI)
What Is American Share Insurance (ASI)?
American Share Insurance (ASI) is a private deposit insurance provider that protects deposits held at certain credit unions. Unlike the National Credit Union Administration (NCUA), which provides federal insurance, ASI offers privately backed share insurance coverage.
ASI was established to provide deposit protection for credit unions that choose not to participate in federal insurance programs.
Why It Matters
Deposit insurance is essential for protecting consumers’ savings. American Share Insurance provides an alternative insurance option for credit unions and their members, ensuring deposits remain protected even if the credit union fails.
For members of credit unions insured by ASI, this protection offers confidence that their funds are secure.
How American Share Insurance Works
Credit unions insured by ASI contribute premiums to the insurance program. These funds are used to reimburse members if a participating credit union experiences financial failure.
Coverage typically includes deposit accounts such as:
- share savings accounts
- share draft accounts
- money market accounts
- share certificates
Some credit unions may offer additional protection beyond federal limits through excess share insurance.
ASI vs NCUA Insurance
- ASI is a private insurance provider.
- NCUA insurance is backed by the U.S. federal government.
Both provide protection for credit union deposits but operate under different insurance structures.
FAQs About American Share Insurance
Is ASI insurance safe?
ASI has insured credit union deposits for decades and is regulated by state authorities.
Are ASI-insured credit unions common?
Most credit unions use federal NCUA insurance, but some choose ASI coverage.
Does ASI offer the same coverage limits?
Coverage may vary by institution and insurance structure.
Related Terms
