Paul Sanchez
Federally insured credit unions offer a safe place for credit union members to save money. The National Credit Union Administration (NCUA) is the government agency that insures deposits at member credit unions. The National Credit Union Share Insurance Fund (NCUSIF) guarantees money in a credit union’s account and is backed by the full faith and credit of the US government. The NCUSIF covers up to $250,000 of the total balance of individuals’ credit union accounts. Credit union members don't need to apply for share insurance coverage as it’s provided automatically when they join a federally insured credit union.
| Characteristics | Values |
|---|---|
| Type of insurance | Share insurance |
| Who provides it | National Credit Union Administration (NCUA) |
| Who it covers | Members of federally insured credit unions |
| What it covers | Share accounts, including deposits in a share draft account, share savings account, or time deposit such as a share certificate |
| Coverage limit | $250,000 per individual depositor, per institution, per ownership category |
| Cost | Covered by the credit union |
| Notification of ending insurance | Credit unions must notify members before ending federal insurance |
| Display requirements | Federally insured credit unions must display the official NCUA insurance sign at each teller station, on their website, and where they accept deposits or open accounts |
| Estimating coverage | Members can use the NCUA's Share Insurance Estimator to calculate their coverage |
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What You'll Learn
Federally insured credit unions
The National Credit Union Share Insurance Fund, often referred to as the "Share Insurance Fund" or "NCUSIF", was established by Congress in 1970 to insure member share accounts at federally insured credit unions. The fund is administered by the NCUA and is backed by the full faith and credit of the United States. The NCUSIF coverage is similar to the coverage provided by the Federal Deposit Insurance Corporation (FDIC).
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. The Share Insurance Fund insures individual accounts at federally insured credit unions up to $250,000, and a member's interest in all joint accounts combined is insured up to $250,000. The Share Insurance Fund also separately protects IRA and KEOGH retirement accounts up to $250,000.
Members can calculate the amount of coverage their insured funds have at a federally insured credit union using the NCUA's Share Insurance Estimator, which is available on the NCUA's consumer website, MyCreditUnion.gov. 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.
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Share insurance coverage
Credit union members are automatically provided with share insurance coverage when they join a federally insured credit union; they do not need to apply for it. Each credit union 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, IRAs, and KEOGH retirement accounts.
NCUA share insurance covers various types of share deposits received at a federally insured credit union, including deposits in a share draft account, share savings account, or time deposits such as a share certificate. The insurance covers members' accounts, dollar-for-dollar, including principal and any posted dividends up to the insurance limit.
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 MyCreditUnion.gov website. This estimator can be used for personal, business, or government accounts. 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, nor does it insure digital assets or cryptocurrencies.
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NCUA insurance
The National Credit Union Administration (NCUA) is an independent federal agency created by the US Congress to regulate, charter, and supervise federal credit unions. The NCUA insurance, also known as the National Credit Union Share Insurance Fund (NCUSIF), was established by Congress in 1970 to provide protection for members of federally insured credit unions.
The NCUSIF is similar to the coverage provided by the Federal Deposit Insurance Corporation (FDIC) and insures credit union members' accounts, dollar-for-dollar, up to $250,000 per individual depositor. This includes principal and any posted dividends through the date of the insured credit union's closing. The coverage is automatic and provided when members join a federally insured credit union. 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 also not insured by the NCUSIF.
To ensure transparency, federally insured credit unions are required to display the official NCUA insurance sign at each teller station, where insured deposits are usually received, and in all branches. This includes displaying the sign on their websites and other places where they accept share deposits or open accounts. Credit union members can use the NCUA's Share Insurance Estimator on MyCreditUnion.gov to calculate their coverage amounts for personal, business, or government accounts.
The NCUA regularly reminds individuals about the safety of their deposits in federally insured credit unions and encourages vigilance against scams, especially during times like the COVID-19 pandemic. The NCUA is committed to properly managing the share insurance fund and has taken initiatives to improve efficiency and reduce costs.
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Private insurance
The NCUA does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities, or municipal securities, even if these products are sold at a federally insured credit union. It also does not insure safe deposit boxes or their contents and does not cover digital assets like cryptocurrencies.
Credit union members can use the NCUA's Share Insurance Estimator to calculate their insured funds, and this tool can be used for personal, business, or government accounts.
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NCUA's Share Insurance Estimator
The National Credit Union Administration's (NCUA) Share Insurance Estimator is a tool that helps consumers, credit unions, and their members understand the share insurance rules that apply to their accounts. It calculates and reports share insurance coverage for various account types, including personal, business, and government accounts.
The estimator is available on the NCUA's consumer website, MyCreditUnion.gov, and can be used to calculate the insurance coverage of all types of share accounts offered by a federally insured credit union. This includes Share Draft Accounts (checking accounts), Share Savings Accounts (regular, club, escrow, etc.), and time deposits such as share certificates.
Personal accounts include individual ownership, joint ownership, payable-on-death (accounts with named beneficiaries), living trusts, and Individual Retirement Accounts (IRAs). Joint Ownership Accounts are insured up to $250,000 per owner, while IRAs and other certain retirement accounts are insured up to $250,000 per member-owner. Revocable Trust Accounts are insured up to $250,000 for each eligible beneficiary, and the same limit applies to each owner of an Irrevocable Trust Account.
It is important to note that the Share Insurance Estimator only calculates coverage for one credit union at a time, and the results are based on the rules in effect as of May 2013. If any regulatory changes occur, the NCUA will update the calculator accordingly. Additionally, the estimator does not apply to accounts that are not shares in a federally insured credit union, and it does not insure digital assets or cryptocurrencies.
The NCUA provides a comprehensive glossary of terms and frequently asked questions to assist users in understanding share insurance coverage. For further assistance, members can call 1.800.755.1030 or send an email to [email protected].
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Frequently asked questions
The National Credit Union Administration is a federal agency created by Congress to regulate and insure credit unions.
The NCUA insurance covers members' accounts at each federally insured credit union, including principal and any posted dividends up to the insurance limit of $250,000 per depositor, per institution, per ownership category.
All federally insured credit unions must prominently display the official NCUA insurance sign at each teller station and where insured deposits are received. You can also check using the NCUA’s Credit Union Locator tool.
