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
The standard share insurance amount is $250,000 per share owner, per insured credit union, for each account ownership category.
How does share insurance work? ›
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.
Do beneficiaries increase NCUA coverage? ›
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.
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 don't worry about FDIC insurance. Their money is held in their name and not the name of the custodial private bank. Other millionaires have safe deposit boxes full of cash denominated in many different currencies.
What is the maximum allowable benefit? ›
Benefit maximum or maximum benefit is the highest amount of money that an insurance company pays for certain health services for an insured individual. Insurance policies cover these services over a specific agreed period.
Are credit unions safe from collapse? ›
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.
Is American share insurance safe? ›
Our financial statements are audited annually by Deloitte & Touche, LLP. In addition to our history of low loss ratios and high equity levels, no member has ever lost money in an American Share-insured credit union account.
Is it cheaper when you share insurance? ›
Sharing a policy is generally cheaper because you'll split the cost of certain coverages. You benefit from your spouse's clean driving record: If you've had violations or accidents, your spouse's clean driving history may result in a more competitive rate.
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.
The NCUA insures up to $250,000 per depositor, per institution, per ownership category. “Ownership category” refers to account type, usually single or joint. If you have a single and a joint account at the same institution, both are insured up to the $250,000 limit.
Is NCUA as good as 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.
What happens if a credit union loses money? ›
Both the NCUA and FDIC are responsible for insuring funds in the event that a financial institution fails. 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.
How safe is my credit union? ›
Credit unions are federally insured by the National Credit Union Share Insurance Fund (NCUSIF), which is backed by the full faith and credit of the U.S. government. The bank equivalent is the (more widely known) Federal Deposit Insurance Corporation (FDIC).
Is a credit union safer than 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.
Does FDIC cover $500,000 on a joint account? ›
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.
What to do if you have more than 250k in the bank? ›
How to Protect Large Deposits over $250,000
- Open Accounts at Multiple Banks. ...
- Open Accounts with Different Owners. ...
- Open Accounts with Trust/POD [pay-on-death] Designations. ...
- Open a CD Account, or Money Market Account, with a bank that offers IntraFi (formerly CDARs) services.
The FDIC refers to these different categories as “ownership categories.” This means that a bank customer who has multiple accounts may qualify for more than $250,000 in insurance coverage, if the customer's funds are deposited in different ownership categories and the requirements for each ownership category are met.
Can I have more than $250000 of deposit insurance coverage at one FDIC insured bank? ›
Q: Can I have more than $250,000 of deposit insurance coverage at one FDIC-insured bank? A: Yes. The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled.
