Jeffrey Wade
Federally insured credit unions are a safe place for members to save money. The National Credit Union Share Insurance Fund (NCUSIF) was established by Congress in 1970 to insure member share accounts at federally insured credit unions. Credit union members do not need to apply for share insurance coverage as it is provided automatically when they join a federally insured credit union. Each credit union member has at least $250,000 in total coverage for share accounts held at a federally insured credit union. 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.
| Characteristics | Values |
|---|---|
| Are savings at credit unions insured? | Yes, federally insured credit unions offer a safe place for credit union members to save money. |
| Who insures the savings? | The National Credit Union Share Insurance Fund (NCUSIF) |
| Who regulates it? | The National Credit Union Administration (NCUA) |
| Who does NCUA regulate? | Federal credit unions |
| What is the insurance limit? | $250,000 per individual depositor |
| What does the insurance cover? | Share accounts, including deposits in a share draft account, share savings account, or time deposit such as a share certificate. |
| What does the insurance not cover? | Money invested in stocks, bonds, mutual funds, life insurance policies, annuities, municipal securities, and safe deposit boxes or their contents. |
| How to confirm if a credit union is federally insured? | Visit the NCUA's Credit Union Locator tool or use the Find a Credit Union function on MyCreditUnion.gov |
| How to calculate the amount of insurance coverage? | Use the NCUA's Share Insurance Estimator on MyCreditUnion.gov |
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What You'll Learn
What is the National Credit Union Share Insurance Fund?
The National Credit Union Share Insurance Fund (NCUSIF) was established by the US Congress in 1970 to insure member share accounts at federally insured credit unions. It is similar to the deposit insurance coverage provided by the Federal Deposit Insurance Corporation (FDIC).
The NCUSIF is administered by the National Credit Union Administration (NCUA), an independent federal agency created by Congress to regulate, charter and supervise federal credit unions. The fund is backed by the full faith and credit of the United States government.
Credit union members are automatically covered by the NCUSIF when they join a federally insured credit union. There is no need to apply for coverage. Each member has at least $250,000 in total coverage for share accounts held at a federally insured credit union. This includes individual accounts, joint accounts, and IRA and KEOGH retirement accounts. The NCUSIF also separately protects members' trust accounts.
The NCUSIF covers many types of share deposits, including deposits in a share draft account, share savings account, or time deposit such as a share certificate. It covers members' accounts dollar-for-dollar, including principal and any posted dividends through the date of the insured credit union's closing, up to the insurance limit. This coverage also applies to non-member deposits when permitted by law.
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How much money is insured?
The National Credit Union Share Insurance Fund (NCUSIF) was established by Congress in 1970 to insure member share accounts at federally insured credit unions. The NCUSIF coverage is similar to the coverage provided by the Federal Deposit Insurance Corporation (FDIC). The NCUSIF is backed by the full faith and credit of the United States government.
Each credit union member has at least $250,000 in total coverage for share accounts held at a federally insured credit union. This includes Single Ownership Accounts (owned by one person with no beneficiaries) and Joint Ownership Accounts (two or more persons with no beneficiaries). The NCUSIF also separately protects IRA and KEOGH retirement accounts up to $250,000.
For accounts with named beneficiaries, such as payable-on-death accounts, each named beneficiary is insured up to $250,000. This means that if a member has a payable-on-death account with two beneficiaries, each beneficiary is insured up to $250,000, for a total of $500,000 in coverage for that account.
Credit union members can use the NCUA’s Share Insurance Estimator to calculate the amount of coverage their insured funds have at a federally insured credit union. The estimator can be found on the NCUA’s consumer website, MyCreditUnion.gov, and can be used for personal, business, or government accounts. It is important to note that NCUA insurance does not cover all types of investments or insurance products, such as stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities.
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How to confirm if a credit union is federally insured
Savings at credit unions are insured by the National Credit Union Administration (NCUA), an independent US government agency that regulates and supervises federal credit unions. The NCUA manages the National Credit Union Share Insurance Fund (NCUSIF), which insures the accounts of members in federal credit unions and most state-chartered credit unions. The standard insurance amount is $250,000 per owner, per insured credit union, for each account category.
To confirm if a credit union is federally insured, you can use the following methods:
- Visit the NCUA's Credit Union Locator tool on MyCreditUnion.gov. This online database allows you to search for your credit union and determine if it is federally insured by the NCUA.
- Look for the official NCUA insurance sign: All federally insured credit unions are required to prominently display the official NCUA insurance sign at each teller station, where insured account deposits are normally received. The sign should also be displayed on their website and where they accept share deposits or open accounts.
- Contact the NCUA: If you have questions about the NCUA's share insurance coverage, you can call them at 1.800.755.1030, option 1, Monday through Friday, 8 a.m. to 5 p.m. Eastern, or send an email to [email protected].
- Use the NCUA's Share Insurance Estimator: This tool, available on the NCUA's consumer website, MyCreditUnion.gov, allows members to calculate the amount of coverage their insured funds have at a federally insured credit union. It can be used for various account types, including personal, business, and government accounts.
It is important to note that the NCUA does not insure all types of investments or products sold by credit unions, such as stocks, bonds, mutual funds, or life insurance policies. Additionally, safe deposit boxes and their contents are also not insured by the NCUA. Therefore, it is essential to understand the NCUA insurance limits and coverage before joining a credit union.
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How to calculate coverage
The National Credit Union Administration (NCUA) provides insurance for credit unions that are federally insured. This insurance covers members' accounts, dollar-for-dollar, including principal and any posted dividends up to \$250,000 per individual depositor. This limit applies to Single Ownership Accounts, Joint Ownership Accounts, IRAs and Other Certain Retirement Accounts, and Revocable Trust Accounts. To calculate the coverage provided by the NCUA's insurance, members can use the Share Insurance Estimator available on the NCUA's consumer website, MyCreditUnion.gov.
The Share Insurance Estimator can be used to calculate the insurance coverage for all types of share accounts offered by a federally insured credit union, including Share Draft Accounts (checking accounts) and Share Savings Accounts (regular, club, escrow, etc.). It also covers various personal account types, including individual ownership, joint ownership, payable-on-death accounts, living trusts, and IRAs.
To use the estimator, follow these steps:
- Visit the MyCreditUnion.gov website.
- Access the Share Insurance Estimator tool.
- Enter the credit union name.
- Start by selecting "Add next account" and entering your first account details.
- Repeat this step for each account you hold at that credit union.
- Once you have added all your accounts, review and print your report.
It is important to note that the estimator only calculates coverage for one credit union at a time, and the results are strictly advisory. The estimator bases its computations on the rules in effect as of May 2013, and subsequent regulatory changes may impact the coverage. Additionally, the NCUA does not insure certain investment or insurance products, such as stocks, bonds, mutual funds, and life insurance policies, even if they are sold by a federally insured credit union.
To confirm if a credit union is federally insured, members can utilize the NCUA's Credit Union Locator tool. Federally insured credit unions are required to display the official NCUA insurance sign at each teller station and on their website. As of 2025, no one has lost insured deposits at a federally insured credit union, demonstrating the safety of these institutions for members' savings.
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What the insurance covers and what it doesn't
The National Credit Union Share Insurance Fund (NCUSIF) was established by Congress in 1970 to insure member share accounts at federally insured credit unions. The NCUSIF is similar to the coverage provided by the Federal Deposit Insurance Corporation (FDIC). Credit union members are automatically insured when they join a federally insured credit union, and each member has at least $250,000 in total coverage for share accounts. This includes Single Ownership Accounts, Joint Ownership Accounts, IRAs and Other Certain Retirement Accounts, and Revocable Trust Accounts. The NCUSIF also separately protects IRA and KEOGH retirement accounts up to $250,000.
NCUA 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. This coverage also applies to non-member deposits when permitted by law.
However, it is important to note that NCUA insurance does not cover all types of deposits and investments. Money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities is not insured by the NCUSIF, even if these investment or insurance products are sold at a federally insured credit union. Additionally, NCUA insurance does not cover safe deposit boxes or their contents.
To confirm if a credit union is federally insured, members can use the NCUA's Credit Union Locator tool or the Find a Credit Union function on the MyCreditUnion.gov website. Federally insured credit unions are required to display the official NCUA insurance sign at each teller station and on their websites. Members can also calculate their coverage using the NCUA's Share Insurance Estimator, which is available on the MyCreditUnion.gov website.
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Frequently asked questions
Yes, deposits at federally insured credit unions are protected by the National Credit Union Share Insurance Fund (NCUSIF). This insurance is provided automatically when you join a federally insured credit union.
The NCUSIF provides insurance coverage of up to $250,000 per individual depositor. This limit applies to Single Ownership Accounts, Joint Ownership Accounts, and certain retirement accounts like IRAs.
You can use the NCUA's Credit Union Locator tool or the "Find a Credit Union" function on their website to confirm if your credit union is federally insured. Federally insured credit unions are also required to display the official NCUA insurance sign at each teller station and on their website.
