Non-Member & Nominee Deposits - National Federation of Community Development Credit Unions

Frequently Asked Questions

What is a Non-Member Deposit?
A Non-Member Deposit is an insured deposit made by an organization or an individual who is not a member of the credit union. The National Federation of Community Development Credit Unions makes non-member deposits, as do some credit unions, banks, foundations, and other investors.

What is a Nominee Deposit?
A Nominee Deposit is an insured deposit made by the Federation acting as agent for a third party investor. The third party investor is the depositor of record and the beneficiary of the insurance.

What types of Credit Unions are eligible to receive Non-Member and Nominee Deposits?
A credit union must have low-income designation from the National Credit Union Administration in order to be eligible to receive non-member deposits from the private sector. The credit union must also be in compliance with the current federal and/or state regulations regarding the eligibility to receive "non-member deposits" (at present, this limit is the larger of 20% of total shares and deposits or $3.0 million), or provide evidence of the waiver of this requirement by the NCUA.

Who is eligible to receive Non-Member and Nominee Deposits from the Federation?
In order to be eligible for a non-member deposit from the Federation, a credit union must be a CDCU Policy Member in good standing. The deposits must be insured by the NCUA or by an acceptable private insurer.

What are the terms for these deposits?
The Community Development Investment Program strives to make available below market interest rates in order to support credit unions as they contribute to their respective communities. Nominee and non-member deposits can be made in amounts of up to $100,000. However, if a credit union is financially strong, the Federation may be able to make additional, uninsured "jumbo" deposits or make available "nominee deposits" from other sources (Please note: Jumbo Deposits NOT currently available).

Credit unions interested in participating in the Federation's deposit programs should contact the CDI Program for current interest rates.

What type of documentation is required?
The credit union must sign a Deposit Agreement. After receiving the funds, the credit union issues a Deposit (or Share) certificate and sends it to the Federation. When the credit union has received a non-member deposit from the Federation, the share certificate is issued to the National Federation of Community Development Credit Unions (NFCDCU). When the deposit is under one of the Federation’s nominee agreements, the share certificate is issued in the name of the NFCDCU “as nominee” for that depositor.

What is required in order to apply for a Non-Member Deposit or for a Nominee Deposit?
Complete and submit an application form, including the amount requested, and a description of the proposed use of the funds.

Download Nominee/Non-Member Deposit Application