The National Credit Union Administration (NCUA) is an independent federal agency that regulates and insures deposits in federally insured credit unions in the United States.
The NCUA’s main role is to protect consumers’ deposits by insuring them against loss if the credit union fails.
The NCUA operates the National Credit Union Share Insurance Fund (NCUSIF), which provides deposit insurance coverage to member accounts in all federally insured credit unions.
How much coverage does the NCUA provide
Depositor insurance offered by the NCUA provides coverage of up to $250,000 per depositor, per credit union, for each account ownership category.
- For example, if an individual has a checking account and a savings account at the same credit union, each account is insured separately up to $250,000.
- Joint accounts are also insured up to $250,000 per co-owner
What accounts are covered by NCUA insurance
The NCUA’s depositor insurance coverage includes a wide range of account types, including regular savings accounts, checking accounts, money market accounts, and certificates of deposit (CDs).
However, it does not cover investment products such as stocks, bonds, or mutual funds. It’s important to note that the NCUA insurance coverage is backed by the full faith and credit of the U.S. government, which means that if a credit union fails, the government guarantees the payment of insured deposits.
5 Lesser-known facts about the NCUA depositor program
- The NCUA was not created until 1970 as an independent federal agency to regulate, charter, and insure federal credit unions in the United States. The FDIC that protects bank depositors was created in 1933.
- NCUA’s depositor insurance coverage has never failed, meaning that no depositor has ever lost money in a federally insured credit union due to a failure.
- The NCUA provides a tool called “Share Insurance Estimator” on its website, which allows credit union members to estimate their share insurance coverage and ensure that their deposits are fully protected.
- NCUA’s insurance coverage is not just limited to credit union members in the United States – it also extends to credit union members in U.S. territories, such as Puerto Rico and Guam.
- NCUA’s insurance coverage includes protection for credit union members’ Individual Retirement Accounts (IRAs), which can provide peace of mind for those saving for retirement.
It’s always a good idea to review the details of your deposit insurance coverage and keep your deposits within the coverage limits to ensure that your money is fully protected.
