National Credit Union Administration (NCUA) | USAGov (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).

NCUA vs. FDIC

The NCUA insures credit union accounts, while the FDIC provides 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.

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.

A three-member Board of Directors oversees the NCUA's operations by setting policy, approving budgets and adopting rules and regulations. Each Board member is appointed by the president and confirmed by the Senate. The president also designates the Chairman of the NCUA Board.

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.

Like banks, which are federally insured by the FDIC, credit unions are insured by the NCUA, making them just as safe as banks. The National Credit Union Administration is a US government agency that regulates and supervises credit unions.

Credit unions are insured by the National Credit Union Administration (NCUA). Just like the FDIC insures up to $250,000 for individuals' accounts of a bank, the NCUA insures up to $250,000 for individuals' accounts of a credit union. Beyond that amount, the bank or credit union takes an uninsured risk.

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. The FDIC insures deposits at most banks, and the NCUA insures deposits at most credit unions.

Are CDs covered by NCUA? ›

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.

bank in a recession, the credit union is likely to fare a little better. Both can be hit hard by tough economic conditions, but credit unions were statistically less likely to fail during the Great Recession. But no matter which you go with, you shouldn't worry about losing money.

Some of the accounts that do not qualify for NCUA coverage include mutual funds used for collecting money from investing bodies to buy bonds. The list also includes stocks that provide ownership of an entity through an investment, life insurance policies, and annuities that are offered by affiliated bodies.

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.

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.