NCUA insurance
Also called Share insurance, NCUSIF
Federal insurance for credit union deposits, covering up to $250,000 per member, per insured credit union, per ownership category.
What it means
The National Credit Union Administration regulates federal credit unions and runs the National Credit Union Share Insurance Fund, which protects member deposits if an insured credit union fails. Like FDIC insurance, it is backed by the full faith and credit of the U.S. government.
Coverage is $250,000 per member, per insured credit union, per ownership category, so individual, joint, retirement and trust accounts can each be insured separately. It covers share accounts such as savings, share drafts (checking), money market shares and share certificates. It does not cover investments like stocks, mutual funds or annuities. A small number of state-chartered credit unions use private insurance instead, so it is worth confirming which applies.
Example
Suppose a member has $150,000 in a share certificate and $120,000 in an IRA savings account at one credit union. Both are fully insured because individual accounts and IRAs are separate ownership categories, each with its own $250,000 limit.
How it’s used
- Confirming that money at a credit union is federally protected
- Planning how to hold balances above $250,000
- Comparing credit unions with banks on safety
Related terms
Educational information only, not financial, tax or legal advice. Rules, limits and rates change; check the IRS, your lender or plan, or a qualified professional before acting.