All federally insured credit unions must prominently display the official NCUA insurance sign shown below at each teller station and where insured account deposits are normally received in its principal place of business and in any of its branches. Federally insured credit unions are also required to display this official sign on its Internet page, if any, where they accept deposits or open accounts. A credit union may not end its federal insurance without first notifying members.
Federally Versus Privately Insured Credit Unions
Federally Insured Credit Unions
Federally chartered credit unions are regulated by the National Credit Union Administration and insured by the National Credit Union Share Insurance Fund (NCUSIF), which is backed by the full faith and credit of the United States government. Established by Congress in 1970 to insure member share accounts at federally insured credit unions, NCUSIF is similar to deposit insurance coverage provided by the Federal Deposit Insurance Corporation.
Privately Insured Credit Unions
Some deposits at state-chartered credit unions are insured by private insurers. These private insurers provide non-federal share insurance coverage of deposits that are not backed by the full faith and credit of the United States government.
You can tell if your credit union is federally insured by NCUA by searching for a credit union inFind a Credit Union. In addition, credit unions must display in their offices the official NCUA insurance sign. All federal credit unions must be insured by NCUA, and no credit union may terminate its federal insurance without first notifying its members.
Federal vs. State-Chartered Credit Unions
Federal Credit Union: NCUA regulates and insures federal credit unions. A federal credit union can adopt a trade name for use in advertising but its official charter name, which must have the word "federal credit union" in it, must be used in all official or legal communications or documents.
State-Chartered Credit Union: State-chartered credit unions are regulated by the state supervisory authority where the credit union's main office is located and may or may not be insured by NCUA.
Share Insurance Fund Overview
The Share Insurance Fund is backed by the full faith and credit of the United States. Credit union members have never lost a penny of insured savings at a federally insured credit union. The Share Insurance Fund maintains at or near 1.30 percent of federally insured credit union deposits. By law, federally insured credit unions maintain one percent of their deposits in the Share Insurance Fund, and the NCUA Board can levy a premium if necessary.
Share Insurance Toolkit for Credit Unions
This toolkit contains a variety of helpful resources for credit unions about NCUA's Share Insurance Fund Program.
FAQs
All deposits at federally insured credit unions are protected by the National Credit Union Share Insurance Fund, with deposits insured up to at least $250,000 per individual depositor. Credit union members have never lost a penny of insured savings at a federally insured credit union.
What is the limit for the National Credit Union Share Insurance Fund? ›
In summary, the NCUSIF provides insurance protection to depositors at credit unions in the United States, up to a maximum of $250,000 per depositor, per insured credit union. The program covers a wide range of accounts and is backed by the full faith and credit of the United States government.
What is the federal insurance limit for credit unions? ›
WHAT BASIC COVERAGE IS PROVIDED BY THE NCUSIF? The NCUSIF provides all members of federally insured credit unions with $250,000 in coverage for their single ownership accounts.
What is the standard maximum share insurance amount? ›
The standard maximum deposit insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.
Do beneficiaries increase NCUA insurance? ›
Individual Accounts
You are insured for up to $250,000 for combined balances in your Members 1st Savings, Checking, Share Certificates, and Money Market Accounts. Beneficiaries may increase coverage limits.
Is it safer to have your money in a credit union or a bank? ›
Generally, credit unions are viewed as safer than banks, although deposits at both types of financial institutions are usually insured at the same dollar amounts. The FDIC insures deposits at most banks, and the NCUA insures deposits at most credit unions.
How to maximize NCUA insurance? ›
By structuring your deposits using different ownership assignments such as single ownership, joint ownership, and revocable family trusts, you can maximize your NCUA insurance coverage.
Which is better, NCUA or FDIC? ›
One of the only differences between NCUA and FDIC coverage is that the FDIC will also insure cashier's checks and money orders. Otherwise, banks and credit unions are equally protected, and your deposit accounts are safe with either option.
How long does NCUA have to pay you back? ›
If the member shares are not assumed by another credit union, all verified member shares are typically paid within five days of a credit union's closure. No member of a federally insured credit union has ever lost a penny in insured accounts.
Where do millionaires keep their money if banks only insure 250k? ›
Millionaires can insure their money by depositing funds in FDIC-insured accounts, NCUA-insured accounts, through IntraFi Network Deposits, or through cash management accounts. They may also allocate some of their cash to low-risk investments, such as Treasury securities or government bonds.
The Share Insurance Fund insures individual accounts at federally insured credit union 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.
Is it safe to have more than $250000 in a bank account? ›
The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category. Deposits held in different ownership categories are separately insured, up to at least $250,000, even if held at the same bank.
Do credit unions protect your money? ›
The National Credit Union Administration (NCUA) is an independent agency created by the U.S. government to regulate and protect credit unions and their owners. Just like the FDIC, the NCUA insures up to $250,000 to all credit union members and provides protection in the event of a credit union failure.
Do credit unions insure deposits up to 250000? ›
The National Credit Union Administration (NCUA) is the government agency that insures deposits at member credit unions. When your money is in a share account with a federally insured credit union, it's protected up to $250,000 per depositor, per federally insured credit union, per ownership category.
What to do if you have more than 250k in the bank? ›
How to Insure Bank Deposits Over $250,000
- Open an Account at a Different Bank. FDIC coverage limits are per bank. ...
- Add a Joint Account Owner. ...
- Split Funds Between Ownership Categories. ...
- Use a Network Bank.
This is their only account at this IDI and it is held as a “joint account with right of survivorship.” While they are both alive, they are fully insured for up to $500,000 under the joint account category.
