How does an Extended Insurance Account work?

Your funds are automatically placed with federally insured partner credit unions through Sound Credit Union’s deposit network. Each placement is insured up to $250,000 by the NCUA’s Share Insurance Fund, protecting your total balance.

For example, let’s say your business has $1 million that you want to safeguard and earn interest on. You start by depositing the full amount with Sound Credit Union through an Extended Insurance Account. The money is then distributed into smaller portions and placed in demand deposit accounts at various credit unions within the network. The first $250,000 will be allocated to Sound Credit Union, another $250,000 to Credit Union A, an additional $250,000 to Credit Union B, and the remaining $250,000 to Credit Union C. All of these credit unions are partnered with the ModernFi Network. This allocation helps ensure that each dollar is covered by NCUA share insurance, in an amount up to the maximum of $250,000 per share owner per credit union.