How does the NCUA work?
The government requires all federally chartered credit unions to carry NCUA insurance. State-chartered credit unions may purchase private insurance to cover deposits, but many opt for coverage through the NCUA. This premium doesn’t come out of your wallet; credit unions cover the cost.
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.
What is the difference between the NCUA and the FDIC?
Here’s how similar the NCUA and the FDIC are — and how they keep your money safe:
FDIC | NCUA are both federal agencies that insures consumers’ deposits. FDIC applies at banks, NCUA applies at Credit Unions.
BOTH insure the following amount:
$250,000 per person, per institution, per ownership category.
Joint accounts are insured up to $250,000 per person, per ownership category.
BOTH insure the following accounts:
- Checking accounts
- Savings accounts
- CDs
- Money market accounts
BOTH DO NOT insure the following accounts:
- Mutual funds
- Annuities
- Treasury securities
- Life insurance policies
- Stocks
- Bonds
You can learn more at https://ncua.gov/