New legislation passed by the U.S. Senate Wednesday will increase the level of federal insurance for credit unions savings to $250,000.

The legislation must next be considered by the U.S. House. The legislation will do the same for savings in banks insured by the Federal Deposit Insurance Corporation (FDIC).

“Federally-insured savings at credit unions will have the same level of coverage as savings in federal-insured banks once this legislation is passed by Congress,” said Paul Knorr, president/CEO of Accentra Credit Union.

“News stories about the increase in federal insurance need to reflect the fact that credit unions are included in the legislation — Minnesota’s 1.5 million credit union members across the nation need to know about this development,” Knorr said.

If passed by the U.S. House, the Emergency Economic Stabilization Act of 2008 would increase federal savings insurance coverage from $100,000 to $250,000.

The increase would be temporary, taking effect until Dec. 31, 2009, according to Knorr. Since 1930, Accentra Credit Union (formerly Hormel Credit Union) has been serving more than 1,200 members. Anyone who lives, in Mower, Freeborn, Olmsted and Winona counties can qualify for membership. Offices are located in Austin and Albert Lea.