What Is the NCUA?
The National Credit Union Administration (NCUA) is an independent federal agency that charters and supervises federal credit unions, and administers the National Credit Union Share Insurance Fund (NCUSIF). Established by Congress in 1970, the NCUA protects deposits at more than 4,000 federally insured credit unions across the United States.
What Does NCUA Insurance Cover?
NCUA insurance covers "shares" — the credit union term for deposits — at federally insured credit unions. This includes:
- Share savings accounts
- Share draft accounts (checking accounts)
- Share certificates (the equivalent of CDs)
- Money market accounts
- IRA share accounts
It does not cover investments such as stocks, bonds, mutual funds, or annuities — even if purchased through the credit union.
Coverage Limits by Account Category
The $250,000 limit applies separately to each "account ownership category":
- Single ownership accounts: $250,000 per member
- Joint accounts: $250,000 per co-owner (a two-person joint account is insured up to $500,000 total)
- IRAs and Keogh plans: $250,000
- Revocable trust accounts: $250,000 per named beneficiary, up to five beneficiaries ($1.25M maximum for a single-grantor trust with five beneficiaries at the same institution)
- Irrevocable trust accounts: $250,000 per beneficiary in certain situations
How Account Categories Affect Coverage
Different ownership categories can receive separate coverage when NCUA requirements are met. Because ownership, beneficiaries, and institution-level aggregation affect the result, use the NCUA Share Insurance Estimator or request an official coverage review rather than relying on a simple example.
How to Verify Insurance Coverage
The NCUA offers a free online calculator at mycreditunion.gov to help you determine whether your specific accounts are fully covered. You can also ask your credit union for a written statement of your insured amounts.
State-Chartered Credit Unions
Not all state-chartered credit unions carry NCUA insurance. A small number are insured by state-authorized private insurers (most commonly in California, Idaho, Illinois, Indiana, Maryland, Nevada, New Hampshire, Ohio, Texas, and Wyoming). Private insurance coverage limits and backing may differ from NCUA coverage. Always verify that a credit union is NCUA-insured before depositing funds above your risk tolerance.
Frequently Asked Questions
NCUA and FDIC insurance are functionally equivalent — both provide $250,000 coverage per depositor per account category, and both are backed by the full faith and credit of the US government. The FDIC covers bank deposits; the NCUA covers credit union share deposits. The two are separate funds managed by different federal agencies.
You never pay directly for NCUA insurance. Credit unions fund the NCUSIF through deposits and assessments. The cost is built into the credit union's operating expenses, not charged separately to members.
Yes, provided the online credit union holds an NCUA insurance charter. Always check for the NCUA logo and verify at ncua.gov before depositing funds.
Some credit unions purchase private excess share insurance (often from American Share Insurance or a similar provider) to cover deposits above the $250,000 NCUA limit. This is separate from and in addition to NCUA coverage. Ask your credit union whether they offer excess coverage.
The NCUA aims to make insured funds available within a few business days of a credit union failure. In most cases, the NCUA arranges a merger with a healthy credit union, and members experience minimal disruption.
Find Credit Unions Near You
Search our directory of 4,336 federally insured credit unions by name, city, or state.