About NCUA (2024)

FAQs

What is the NCUA and what does it do? ›

The National Credit Union Administration, commonly referred to as NCUA, is an independent agency of the United States government that regulates, charters and supervises federal credit unions. NCUA also operates and manages the National Credit Union Share Insurance Fund (NCUSIF).

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.

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.

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.

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.

Generally speaking, credit unions are safer than banks in a collapse. This is because credit unions use fewer risks, serving individuals and small businesses rather than large investors, like a bank.

If a couple has a joint money market account, a joint savings account, and a joint share certificate at the same insured credit union, each co-owner's share of the three accounts is added together and insured up to $250,000 per owner, providing up to $500,000 in coverage for the couple's joint accounts.

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.

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.

Accounts insured in NCUA-insured institutions are savings, share drafts (checking), money markets, share certificates (CDs), Individual Retirement Accounts (IRA), and Revocable Trust Accounts. The maximum dollar amount that is insured in an NCUA institution is $250,000 per institution.

Why choose a credit union over a bank? ›

People choose banks primarily because of the convenience of multiple branches across the country, along with better technology. On the flip side, people choose credit unions primarily because of discounted loan rates, higher interest rates and better customer service.

As liquidating agent of the former corporate credit unions' asset management estates, the NCUA has previously made five rounds of distributions. In 2020, 2021, and 2022, distributions were made to capital holders of Southwest, Members United, Constitution, and U.S. Central.

The NCUA insures credit union accounts, while the FDIC provides federal insurance for bank accounts. They both come with the same limits on insurance coverage. A decision about whether to store money in a credit union or bank shouldn't be affected by which federal agency insures the institution.

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.

The NCUA's operating budget is funded exclusively by the credit unions it regulates and insures.

The NCUA Consumer Assistance Center assists consumers in resolving disputes with credit unions and provides information about federal consumer financial protection and general share insurance matters.

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.