Haris Ashley
It is important to know if your credit union is insured, as this guarantees the safety and security of your deposited funds. The National Credit Union Administration (NCUA) is 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. NCUA insurance covers members' accounts dollar-for-dollar, including principal and posted dividends, up to the insurance limit. Credit union members are automatically insured by the NCUA, and their funds are protected without any additional steps. To determine if your credit union is federally insured by the NCUA, you can search for it in their online database.
| Characteristics | Values |
|---|---|
| Name of the independent agency of the United States government that regulates, charters and supervises federal credit unions | National Credit Union Administration (NCUA) |
| What does NCUA do? | Manages the National Credit Union Share Insurance Fund (NCUSIF) |
| What is NCUSIF? | Established by Congress in 1970 to insure member share accounts at federally insured credit unions |
| Who does NCUSIF cover? | 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 |
| What is the insurance limit? | $250,000 per share owner, per insured credit union, for each account ownership category |
| What does NCUSIF insurance not apply to? | Investments, such as stocks, bonds, mutual funds, annuities, and life insurance |
| What happens when a credit union fails? | NCUA is responsible for managing and closing the institution |
| How to find if a credit union is federally insured? | Search for a credit union in 'Find a Credit Union' on the NCUA website |
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What You'll Learn
Check the NCUA website
The National Credit Union Administration (NCUA) operates and manages the National Credit Union Share Insurance Fund, which insures deposits in all federal credit unions and most state-chartered credit unions. Federally insured credit unions offer a safe place for credit union members to save money, with deposits insured up to at least $250,000 per individual depositor.
The NCUA's website, MyCreditUnion.gov, provides a range of resources to help members understand their share insurance coverage and check if their credit union is insured.
The NCUA's Share Insurance Estimator is a valuable tool available on the website. It allows members to calculate the amount of coverage their insured funds have at a federally insured credit union. The estimator can be used for various account types, including personal, business, and government accounts. It also includes a glossary of terms and frequently asked questions, providing clear and accessible information for members.
The website also offers informative brochures in English and Spanish that members can download, view, and print. These brochures provide detailed explanations of the basic share insurance coverage offered by the NCUA for different account ownership types. The brochures cover topics such as how accounts are federally insured, highlighting the protection provided, and sharing insights on insured funds.
Additionally, the NCUA website features the Credit Union Locator, an online research tool that enables users to find detailed information about federally insured credit unions. Consumers can search for credit unions by name, address, zip code, or charter number and access basic information such as web addresses, phone numbers, and the availability of drive-through services or ATMs. For more comprehensive credit union information, including financial details, insurance status, field of membership, and asset size, users can explore the Research a Credit Union tool, which is the Credit Union Locator's companion.
By utilising these resources on the NCUA website, members can confidently check if their credit union is insured and gain a comprehensive understanding of their share insurance coverage.
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Understand federal insurance rules
The National Credit Union Administration (NCUA) is an independent federal agency that regulates, charters, and supervises federal credit unions. The NCUA also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), which insures the accounts of millions of account holders in all federal credit unions and most state-chartered credit unions. The NCUSIF is backed by the full faith and credit of the US government, and no member has ever lost money from accounts insured by the NCUSIF. The standard insurance amount is $250,000 per share owner, per insured credit union, for each account ownership category. This includes individual ownership, joint ownership, payable-on-death accounts, living trusts, and IRAs. 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.
The NCUA offers a Share Insurance Estimator on its consumer website, MyCreditUnion.gov, to help members calculate the amount of coverage their insured funds have at a federally insured credit union. Federally insured credit unions are required to display the official NCUA insurance sign at each teller station, in their principal place of business, and in all branches and on their website.
It's important to note that the NCUA does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if these investment or insurance products are sold at a federally insured credit union. Additionally, safe deposit boxes and their contents are not insured by the NCUA.
To confirm if your credit union is federally insured, you can visit the NCUA's Credit Union Locator tool on MyCreditUnion.gov. No credit union may end its federal insurance without first notifying its members. However, some state-chartered credit unions are insured by private insurers, providing non-federal share insurance coverage that is not backed by the US government.
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Know the NCUA insurance limits
It is essential to know the NCUA insurance limits when considering a credit union. The National Credit Union Administration (NCUA) is an independent US government agency that regulates, charters, and supervises federal credit unions. The NCUA also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), which insures the accounts of millions of account holders in federal credit unions and most state-chartered credit unions.
The NCUSIF provides share insurance coverage, protecting members against losses if a federally insured credit union fails. This insurance is automatic when joining a federally insured credit union, and it covers individual accounts up to a limit. The standard insurance amount is $250,000 per share owner, per insured credit union, for each account ownership category. This includes Single Ownership Accounts, Joint Ownership Accounts, and retirement accounts such as IRAs. The NCUSIF also covers non-member deposits when permitted by law.
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 by a federally insured credit union. Additionally, safe deposit boxes and their contents are not insured by the NCUA.
The NCUA approved changes to the share insurance rules for revocable and irrevocable trust accounts in 2024. While most member trust depositors are expected to experience no change in coverage, the new rule may reduce coverage for those with more than $1,250,000 in trust deposits at one federally insured credit union.
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Understand state-chartered credit unions
In the United States, credit unions are divided into two categories: state-chartered and federally chartered. State-chartered credit unions are regulated by the state supervisory authority where the credit union's main office is located. They follow state regulations and state-specific guidelines. Some states do not grant credit union charters, so there may not be state-chartered credit unions in certain states. If this is the case, credit unions must be federally chartered.
State-chartered credit unions are regulated by the Washington State Department of Financial Institutions (DFI). They represent about 39% of the number of all credit unions in the United States. Over 45% of credit union assets are held in state-chartered credit unions.
State-chartered credit unions have some advantages over federally chartered credit unions. Federal credit unions have maximum interest rate regulations, whereas different states may have higher or no limits on interest rate charges. State regulatory authorities often have a much greater familiarity with their local credit unions than the NCUA has with federally chartered credit unions.
The dual chartering system, which includes both state and federal regulators, helps ensure the public's confidence in the financial services system. It also provides a safety valve against the concentration of power in the hands of a few decision-makers and against the potential for abusive or unwise actions or oppressive regulation.
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Contact the NCUA
The National Credit Union Administration (NCUA) has an online Credit Union Locator tool that allows users to search for detailed information about federally insured credit unions. This tool provides information such as web addresses, phone numbers, and the availability of drive-through access or ATMs. It also includes more optimized map results with "pins" indicating each credit union's location. Consumers can search for a credit union by name, address, zip code, or charter number.
For more detailed credit union information, including financial information, insurance status, field of membership information, and asset size, consumers can use the Credit Union Locator's companion tool, Research a Credit Union.
The NCUA also provides a Share Insurance Estimator, which allows consumers, credit unions, and their members to understand how its share insurance rules apply to member share accounts, including what is insured and what portion, if any, exceeds coverage limits. The estimator can be used for personal, business, or government accounts. Personal accounts include individual ownership, joint ownership, payable-on-death accounts (with named beneficiaries), living trusts, and IRAs.
If you have questions about the NCUA's share insurance coverage, you can call 1.800.755.1030 and select option 1, Monday through Friday, 8 a.m. to 5 p.m. Eastern Time, or send an email to [email protected].
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Frequently asked questions
The National Credit Union Administration, commonly referred to as NCUA, is an independent agency of the United States government that regulates and insures federal credit unions. You can check if your credit union is federally insured by searching for it on the NCUA website's searchable database.
NCUA insurance covers members' accounts at each federally insured credit union, dollar-for-dollar, including principal and any posted dividends up to the insurance limit of USD 250,000 per share owner, per insured credit union, for each account ownership category. This coverage also applies to non-member deposits when permitted by law.
Checking, Savings, and Certificate Accounts are insured up to USD 250,000. Additionally, certain retirement accounts, such as IRAs and Keoghs, are insured separately up to USD 250,000.
NCUA insurance does not cover money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if these investment or insurance products are sold at a federally insured credit union. NCUA insurance also does not cover safe deposit boxes or their contents.
