Orlando Harmon
The National Credit Union Administration (NCUA) is a government agency that insures deposits at member credit unions. Accounts at credit unions backed by the NCUA are automatically insured, and members don’t need to take any extra steps to ensure that their money is protected. The NCUA does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities. It also does not insure safe deposit boxes or their contents, or digital assets such as cryptocurrencies. The NCUA's counterpart in banks is the Federal Deposit Insurance Corporation (FDIC). Both the NCUA and FDIC offer up to $250,000 of deposit protection per depositor, per account ownership category.
| Characteristics | Values |
|---|---|
| Insured deposits | Up to $250,000 per individual depositor |
| Insured funds | Includes principal and any posted dividends |
| Insured accounts | Personal, business, or government accounts |
| Insured account types | Share draft account, share savings account, or time deposit |
| Not insured | Stocks, bonds, mutual funds, life insurance policies, annuities, municipal securities, safe deposit boxes, or digital assets |
| Regulated by | The Federal Reserve |
| Regulates | Federal credit unions |
| Insured by | Backed by the full faith and credit of the United States |
| Website | MyCreditUnion.gov |
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What You'll Learn
CDs are insured up to $250,000 per account
Certificates of deposit (CDs) are federally insured like other bank accounts. The National Credit Union Administration (NCUA) is the government agency that insures deposits at member credit unions. The NCUA's counterpart to banks is the Federal Deposit Insurance Corporation (FDIC). Both federal agencies have similar rules and processes, and even the same cap on how much of a depositor's funds are insured.
NCUA insurance covers many types of share deposits received at a federally insured credit union, including deposits in a share draft account, share savings account, or time deposit such as a share certificate. The insurance covers members' accounts at each federally insured credit union, dollar-for-dollar, including principal and any posted dividends through the date of the insured credit union's closing, up to the insurance limit. The NCUA does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities.
The NCUA and FDIC both offer up to $250,000 of deposit protection per depositor, per account ownership category. This includes any interest you earn. The NCUA's insurance is administered by the National Credit Union Share Insurance Fund (NCUSIF), which guarantees money in a credit union's account and is backed by the full faith and credit of the United States. No one has lost a single penny of insured deposits at a federally insured credit union.
You can check if your financial institution is insured by the NCUA or FDIC by looking for logos in the financial institution's windows or at teller stations, or by using lookup tools on the NCUA and FDIC websites.
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The NCUA does not insure stocks, bonds, or cryptocurrencies
The National Credit Union Administration (NCUA) is a US government agency that insures deposits at member credit unions. The NCUA provides federal insurance for deposits at credit unions, while the Federal Deposit Insurance Corporation (FDIC) provides federal insurance at banks. Both the NCUA and FDIC offer up to $250,000 of deposit protection per depositor, per account ownership category.
While the NCUA insures a variety of common account types, it does not insure stocks, bonds, mutual funds, life insurance policies, annuities, municipal securities, safe deposit boxes, or digital assets such as cryptocurrencies. These investment and insurance products are often provided by credit unions through third parties, but they are not insured by the Share Insurance Fund.
Credit unions are required to disclose that these products are not deposits or obligations of the credit union and are not guaranteed by the credit union. They are also subject to investment risks, including the possible loss of the principal invested.
Individuals can confirm if their credit union is federally insured by visiting the NCUA's Credit Union Locator tool or by calling the NCUA directly. It is important to note that not all credit unions are federally insured, and those insured by private insurers do not have deposits backed by the full faith and credit of the United States government.
The NCUA plays a crucial role in keeping depositors' funds safe when a credit union fails. The NCUA's Asset Management and Assistance Center liquidates the credit union and returns funds from accounts to its members, typically within five days of closure.
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Federally insured credit unions are safe
NCUA share insurance covers various types of share deposits, including share draft accounts, share savings accounts, and time deposits such as share certificates. It is important to note that NCUA insurance does not cover investments in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if these products are sold by a federally insured credit union. Additionally, safe deposit boxes and their contents are not insured, nor are digital assets like cryptocurrencies.
To ensure members' safety, federally insured credit unions are required to display the official NCUA insurance sign at each teller station and where insured deposits are normally received. Members can also use the NCUA's Share Insurance Estimator to calculate the amount of insured funds in their accounts. This tool is available on the NCUA's consumer website, MyCreditUnion.gov, along with informative brochures and videos about share insurance coverage.
The NCUSIF is backed by the full faith and credit of the United States government, providing an extra layer of security for members' deposits. As of 2020, the NCUA has reminded members that no one has ever lost any insured savings at a federally insured credit union, underscoring the safety of these institutions for individuals looking to save their money.
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NCUA insurance is automatic
The NCUA does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities. It also does not insure safe deposit boxes or their contents and does not cover digital assets such as cryptocurrencies. The NCUA is responsible for managing and closing credit unions that fail. The NCUA's Asset Management and Assistance Center liquidates the credit union and returns funds from accounts to its members. The NCUA fund is backed by the full faith and credit of the United States, and no one has lost insured deposits at a federally insured credit union.
Members can calculate the amount of coverage their insured funds have at a federally insured credit union using the NCUA's Share Insurance Estimator, available on the NCUA's consumer website, MyCreditUnion.gov. The estimator can be used for personal, business, or government accounts. All federally insured credit unions must display the official NCUA insurance sign at each teller station and in all branches.
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NCUA insurance covers various account types
The National Credit Union Administration (NCUA) is an independent federal agency that was established by Congress in 1970 to insure member share accounts at federally insured credit unions. The NCUA administers the National Credit Union Share Insurance Fund, which is similar to the Federal Deposit Insurance Corporation's Deposit Insurance Fund. The Share Insurance Fund insures member savings in federally-insured credit unions, which account for about 98% of all credit unions in the United States.
The NCUA's Share Insurance Fund covers various account types, including:
- Single Ownership Accounts: These are owned by one person with no beneficiaries and are insured up to $250,000 per member-owner.
- Joint Ownership Accounts: These accounts have two or more persons with no beneficiaries and are insured up to $250,000 per owner, with the primary owner being a member of the credit union.
- IRAs and Other Certain Retirement Accounts: These include IRA and KEOGH retirement accounts, which are insured separately up to $250,000 per member-owner.
- Revocable Trust Accounts: Each member-owner is insured up to $250,000 for each eligible beneficiary named or identified in the revocable trust, subject to certain limitations and requirements.
- Irrevocable Trust Accounts: Each owner or beneficiary must be a member of the credit union for the account to be federally insured, with coverage up to $250,000 per beneficiary.
The NCUA's insurance coverage also extends to various types of share deposits, such as share draft accounts, share savings accounts, and time deposits like share certificates. Additionally, the insurance covers both member and non-member deposits, dollar-for-dollar, including principal and posted dividends until the insured credit union's closing date, up to the insurance limit.
It is important to note that the NCUA does not insure all types of investments or insurance products, such as stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if they are sold at a federally insured credit union.
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Frequently asked questions
The National Credit Union Administration (NCUA) is the government agency that insures deposits at member credit unions. The NCUA provides federal insurance for deposits at credit unions, while its counterpart, the Federal Deposit Insurance Corporation (FDIC), provides federal insurance at banks.
NCUA insurance covers many types of share deposits received at a federally insured credit union, including deposits in a share draft account, share savings account, or time deposit such as a share certificate. The insurance covers members' accounts at each federally insured credit union, dollar-for-dollar, including principal and any posted dividends up to the insurance limit. It is important to note that the NCUA does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities.
NCUA insurance covers up to USD 250,000 per individual depositor, per federally insured credit union, per ownership category. For jointly owned accounts, the insurance covers an additional USD 250,000 for each account holder.
You can confirm if your credit union is federally insured by visiting the NCUA's Credit Union Locator tool on its website. Additionally, federally insured credit unions are required to prominently display the official NCUA insurance sign at each teller station and in all branches.
