NCUA Insurance - What It Means For You & How It Works

What is NCUA insurance?

You’ve probably seen the letters “NCUA” at the bottom of our advertising or web pages, but what do those letters mean? And what does it mean when we say First Tech Federal Credit Union is “insured by NCUA” or “federally insured by NCUA”?

Federally chartered credit unions, including First Tech, are regulated by the National Credit Union Administration (NCUA) and insured by the National Credit Union Share Insurance Fund (NCUSIF), backed by the full faith and credit of the U.S. government. Congress established the NCUSIF in 1970 to insure member share accounts at federally insured credit unions—similar to the coverage provided by the Federal Deposit Insurance Corporation (FDIC) for accounts held at banks.  

What deposits and accounts are federally insured by NCUA?

Deposits at all federally insured credit unions and many state-chartered credit unions are covered by NCUA insurance. This means your deposits are insured up to at least $250,000 per individual depositor. These account types include:

• Savings accounts
• Checking accounts
• Share certificates
• Money market accounts

State-chartered credit unions are sometimes insured by private insurers. Private insurers provide non-federal share insurance coverage, but these are not backed by the U.S. government.

How much NCUA insurance coverage do you have?

You’ve worked hard for your money, and we know how important it is to make sure your money is safe. Credit union members have never lost a penny of insured savings at federally insured credit unions. The National Credit Union Administration provides a handy Share Insurance Estimator so you can know exactly what deposits are insured. You’ll want to know how your accounts are organized based on the type of ownership. These ownership categories are: Individual, Joint, Retirement, and Trust.

What accounts aren’t NCUA insured?

Money in investment accounts is not insured at any financial institution. These account types include:

• Stocks
• Bonds 
• Mutual funds
• Annuities 

How to calculate share insurance coverage

Understanding account ownership types

Feel confident banking with an NCUA insured credit union

And if you’re curious how to best structure your accounts to maximize the benefits of NCUA insurance coverage, we’re always available to help. To get your questions answered, schedule an appointment today.