What Is an Extended Insurance Account?
An Extended Insurance Account provides extended federal deposit insurance* by distributing member balances in amounts under the $250,000 NCUA limit across partner credit unions in the ModernFi Network. This allows you to maintain millions in fully insured deposits while keeping a single relationship with Cobalt Credit Union.
Extended Federal Insurance
Up to $15 million in NCUA-insured protection.*
One Simple Account
No need to manage multiple institutions or logins. Using the Extended Insurance Account eliminates the need to keep track of multiple accounts.
Full Liquidity
Deposit, transfer, and withdraw funds anytime. Members can control the account just like a regular transaction account.
24/7 Transparency
View allocations and statements through digital banking.
No Fees
No opening or maintenance fees.
High-Net-Worth Individuals
Protect large cash positions with maximum federal insurance.
Businesses
Safeguard operating accounts, payroll funds, and reserves.
Nonprofits
Protect donor funds and mission-critical reserves.
Municipalities
Meet strict public-fund safety requirements with full transparency.
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Frequently Asked Questions
1. How can Cobalt Cried Union offer these accounts?
Cobalt Credit Union has partnered with a company called ModernFi, which operates a network of partner credit unions that work together to fully insure their members' funds.
2. How does the extended insurance work?
Suppose you have $1 million that you want to safeguard and earn interest on. You can achieve this by depositing the full amount with Cobalt Credit Union through an Extended Insurance Account. Your money is then distributed into smaller portions and placed in accounts at other participating credit unions throughout the network. The first $250,000 will be allocated to Credit Union 1, another $250,000 to Credit Union 2, an additional $250,000 to Credit Union 3, and the remaining $250,000 to Credit Union 4. 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 account owner per credit union.
3. Can I still access my funds easily?
Absolutely! You can transfer or withdraw funds anytime, just like with any regular savings account. Funds are typically available the same day or by the next business day.
4. Is my money safe if a credit union fails?
Yes! Since 1970, no member has lost NCUA-insured finds due to a credit union failure. In the rare event of a failure, the NCUA disburses funds promptly – typically within a few business days.
5. Are there any fees or minimum balances?
No! Our ModernFi Extended Insurance Accounts have zero monthly service fees and no minimum balance requirements.
6. How does this help me consolidate my banking relationships.
With ModernFi's solution, you only need one account with us to access up to $15 nillion in insurance converage. This eliminates the need for multiple accounts at different institutions while simplifying your day-to-day cash management.
7. How do I open an Extended Insurance Account?
Opening an Extended Insurance Account is quick and easy with Cobalt Credit Union. Simply contact your relationship manager to open an account and start taking advantage of the benefits offered by the Insured Sweep Account.
Insurance provided through program credit unions (subject to certain conditions)
