Credit Union Insurance Explained

Credit union deposits are insured.

Just like the Federal Deposit Insurance Corporation (FDIC) insures bank deposits, the National Credit Union Share Insurance Fund (NCUSIF) insures credit union deposits up to $250,000. Credit union insurance covers share accounts and certain retirement accounts, but excludes investments that include life insurance and mutual funds.

Features

A 2009 Federal law increased the credit union insurance limit to $250,000 for each individual account until Dec. 31, 2013. After then, insurance will go back to $100,000 for most accounts, excluding retirement accounts.

Included Accounts

Insured accounts include shares, share drafts (a checking account equivalent), money market accounts, and share certificates. If the balance in the account is less than $250,000, the full amount if covered. On joint accounts, each person receives $250,000 credit union insurance.

Retirement Coverage

Retirement accounts, including IRAs and Keogh retirement accounts, receive additional $250,000 coverage at each credit union.

Exclusions

Life insurance policies, mutual funds, stocks, bonds and annuities are not covered by credit union insurance even if the credit union is a member of NCUSIF.

Credit Union Coverage

If your credit union is a member of the NCUSIF, you'll see a logo at your credit union branch, website or on your bank statement. You can check the NCUA website to see if your credit union is a member of NCUSIF.

References

• NCUA: How Your Accounts Are Federally Insured (PDF)
• Oprah: A Special Note for Credit Union Customers; Suze Orman

Resources

• National Credit Union Administration: Share Insurance Estimator