What is the NCUA?
The National Credit Union Administration (NCUA) is an independent federal agency that charters and supervises federal credit unions. Think of it as the FDIC for credit unions.
The NCUA operates the National Credit Union Share Insurance Fund (NCUSIF), which insures member deposits at federally insured credit unions.
💡 Key Fact
The NCUSIF is backed by the full faith and credit of the United States government—the same backing as FDIC insurance. Your money is equally safe in an NCUA-insured credit union as in an FDIC-insured bank.
NCUSIF Coverage
NCUA insurance coverage mirrors FDIC coverage exactly:
- $250,000 per depositor, per institution, per ownership category
- Covers share accounts (savings), share draft accounts (checking), money market accounts, and certificates
- IRAs and other retirement accounts have separate $250,000 coverage
What's Covered:
- ✅ Share savings accounts
- ✅ Share draft (checking) accounts
- ✅ Money market accounts
- ✅ Share certificates (CDs)
- ✅ IRAs and Keoghs
What's NOT Covered:
- ❌ Stocks, bonds, mutual funds
- ❌ Life insurance policies
- ❌ Safe deposit box contents
- ❌ Losses from theft or fraud (unless the credit union fails)
NCUA vs. FDIC
Here's how the two deposit insurance programs compare:
| Feature | NCUA (Credit Unions) | FDIC (Banks) |
|---|---|---|
| Coverage Amount | $250,000 | $250,000 |
| Government Backing | Full faith & credit of U.S. | Full faith & credit of U.S. |
| Depositor Losses | $0 since 1970 | $0 since 1933 |
| Institutions Covered | ~5,000 credit unions | ~4,600 banks |
| Created | 1970 | 1933 |
🔑 Bottom Line
There is NO difference in safety between NCUA and FDIC insurance. Both are backed by the U.S. government, and no depositor has ever lost insured funds from either.
How to Verify Coverage
Before joining a credit union, verify it's federally insured:
Method 1: Look for the Sign
Federally insured credit unions display the NCUA logo. Online credit unions show it on their website.
Method 2: Use Research a Credit Union
NCUA's official tool to verify any credit union:
🔍 Verify Your Credit Union
Use NCUA's official tool to confirm your credit union is federally insured
NCUA Credit Union Locator →Why Choose a Credit Union?
Credit unions are member-owned, not-for-profit cooperatives. This structure often means:
- Better rates — Higher savings rates, lower loan rates
- Lower fees — Fewer and smaller fees than traditional banks
- Personal service — More focus on member needs
- Community focus — Often support local causes
Potential Drawbacks:
- Smaller branch/ATM networks (though many participate in shared branching)
- May have less sophisticated mobile apps
- Membership requirements (though most are easy to meet)
Many of the apps we review partner with credit unions. Check our Top 10 rankings to see which apps use credit union partnerships.