Understanding Share Insurance Coverage
The National Credit Union Share Insurance Fund, established by Congress in 1970, provides insurance coverage for member share accounts at federally insured credit unions. This protection is similar to the deposit insurance offered by the Federal Deposit Insurance Corporation.
Automatic Coverage for Credit Union Members
Credit union members automatically receive share insurance coverage when they join a federally insured credit union – there’s no need to apply. The Share Insurance Fund insures:
- Individual accounts up to $250,000
- A member’s combined interest in all joint accounts up to $250,000
- IRA and KEOGH retirement accounts separately up to $250,000
The fund is administered by the NCUA and backed by the full faith and credit of the United States. Notably, no member has ever lost insured deposits at a federally insured credit union.
Checking Your Credit Union’s Insurance Status
To verify if your credit union is federally insured:
- Look for the official NCUA insurance sign at teller stations and on their website
- Use the NCUA’s Credit Union Locator tool
Federally insured credit unions must display the NCUA insurance sign prominently and cannot end their federal insurance without member notification.
Types of Insured Accounts
The Share Insurance Fund covers various account types, including:
- Share draft accounts
- Share savings accounts
- Time deposits like share certificates
- Individual ownership accounts
- Joint ownership accounts
- Payable-on-death accounts
- Living trusts
- IRAs
Coverage limits apply per credit union, not per account. Members can use the NCUA’s Share Insurance Estimator tool on MyCreditUnion.gov to calculate their coverage.
Accounts Not Insured by the NCUA
The NCUA does not insure:
- Investments in stocks, bonds, or mutual funds
- Life insurance policies
- Annuities
- Municipal securities
- Cryptocurrencies
- Safe deposit box contents
When these products are offered at credit unions, institutions must clearly disclose that they are not NCUA-insured.
For additional information:
- Call 1-800-755-1030
- Email [email protected]
- Visit MyCreditUnion.gov
