Deposit insurance, provided by government agencies like the Federal Deposit Insurance Corporation(FDIC) and the National Credit Union Administration (NCUA), was created to protect consumers' money. The FDIC insures bank accounts, while the NCUA insures credit union accounts and manages the National Credit Union Share Insurance Fund (NCUSIF). NCUA insurance has similarities to FDIC insurance in that they are both backed by the U.S. government and offer equivalent levels of protection. This article will delve into the specifics of NCUA insurance, including covered accounts and insured amounts.

What Kind of Accounts Does the NCUA Insure?

Similar to the FDIC, the NCUA provides insurance coverage for funds held in individual and joint deposit accounts. This means in the event that a credit union experiences financial difficulties, your money is protected up to a certain amount. Some of the account types typically insured by the NCUA include:

Important Note:

FDIC and NCUA insurance do not cover safe deposit box contents, investment losses, or retirement programs as well as accounts that are considered investments, such as:

  • Mutual Funds
  • Annuities
  • Treasury 
  • Securities
  • Stocks
  • Bonds
  • Life Insurance Policies

What Are the Limits of NCUA Insurance?

If a credit union is federally insured, the total amount of NCUA insurance provided to a member depends on some variables, including the number and classification of accounts held at the institution and the number of eligible beneficiaries named or identified.  

If you’re unsure how much of your money is insured, you can use the NCUA’s Share Insurance Estimator. This tool helps you calculate coverage for personal, business, or government accounts, including individual accounts, joint accounts, trust accounts, and IRAs.

Though different in many ways, both credit unions and banks are safe options for your money provided that they are insured by the FDIC and NCUA respectively. If you have questions about how your credit union accounts are insured by the NCUA, contact us. We’re happy to answer your questions and make sure you’re protected.