Are Credit Unions Insured By FDIC? | The Truth On Coverage

No, credit union deposits are usually protected by NCUA share insurance (not FDIC) up to $250,000 per member, per institution.

You’re checking one thing: if a credit union closes, do you still get your money. You can answer that fast once you know what the insurance labels mean. Banks and credit unions both use federal deposit-style insurance, yet they use different agencies. This guide shows how to confirm coverage, how the $250,000 limit is applied, and what to do when your balance is near the cap.

Are Credit Unions Insured By FDIC? What The Letters Mean

FDIC insurance applies to deposits at FDIC-insured banks. Credit unions use a separate federal system run by the National Credit Union Administration (NCUA). The NCUA administers the National Credit Union Share Insurance Fund (NCUSIF), and federally insured credit unions display language such as “Federally insured by NCUA.” The NCUA’s consumer page on share insurance coverage summarizes the standard limit and shows how NCUA groups accounts by ownership category.

So when someone asks the main question, the clean takeaway is: a federally insured credit union is not FDIC-insured, yet deposits can still be backed by the U.S. government under NCUA rules. The headline limit you’ll see is $250,000, and the details come down to ownership categories.

Credit Union Deposit Insurance: NCUA Vs FDIC Rules

NCUA share insurance and FDIC deposit insurance work in similar ways. Both protect deposit-type accounts up to a cap that applies per owner, per institution, per ownership category. Both cover principal plus interest or dividends that have already been posted through the date of closing. The FDIC’s explainer on understanding deposit insurance is useful background because it clearly separates deposit products from investment products and explains the basic coverage model.

Why Credit Unions Use The Word “Share”

Credit unions are member-owned. Your deposit may be called a “share,” and your checking account may be labeled a “share draft.” For insurance, it’s still a deposit when it sits in a share savings, share draft, money market, or certificate account. The consumer overview on NCUA share insurance lists covered account types and explains how coverage applies at a federally insured credit union.

What $250,000 Covers And What It Does Not

The $250,000 cap is not “per account.” It’s per member inside a single ownership bucket at one institution. If you hold three single-owner accounts at the same credit union, those balances are added together for insurance. A joint account and an IRA can sit in separate buckets and can be insured separately when titled and recorded correctly.

Deposit insurance is limited to deposits. It does not cover investment products like stocks, mutual funds, annuities, or crypto, even when offered next to deposit accounts.

How To Confirm Coverage In Under Five Minutes

You can verify coverage with a short routine that works for new accounts, older accounts, and online-only credit unions.

Check The Insurance Label

Look for “Federally insured by NCUA” on the credit union’s site footer, disclosures, or account opening pages. In a branch, it’s often posted near the entrance. If you see FDIC language on a credit union product page, slow down. Some credit unions offer partner-bank products where the deposit is actually held at a bank, which can make that specific product FDIC-insured while share accounts remain NCUA-insured. The terms will name where the deposit sits.

Sort Your Accounts By Ownership Category

This is the step that changes outcomes. “Checking” and “savings” are product labels. Insurance buckets are ownership labels: single owner, joint owners, retirement, trust, and more.

Add Balances Inside Each Bucket At One Credit Union

Once you know your buckets, add balances inside each bucket at that single credit union. If a bucket total goes over the limit for a given owner, that slice can be uninsured. That does not mean the credit union lacks insurance. It means the bucket total is above the cap.

Also check what the credit union counts as a “deposit” for insurance. Covered funds usually include share savings, share draft checking, money market shares, and time deposits such as share certificates. The insurance amount is measured dollar-for-dollar, so your posted dividends are counted in the insured balance up to the cap. If a product is labeled as an investment, a brokerage service, or “not a deposit,” treat it as outside share insurance until the terms say otherwise.

The table below summarizes common ownership categories and the detail that trips people up.

Ownership Category	Common Credit Union Accounts	Coverage Detail To Watch
Single Ownership	Share savings, share draft checking, certificates in one name	All single-owner accounts at the same credit union add together for that owner, up to $250,000.
Joint Ownership	Two-owner checking or savings	Each co-owner can be insured up to $250,000 for their share of all joint accounts combined, if equal rights apply.
Retirement Accounts	IRA share accounts, Keogh plan accounts	Insured separately from non-retirement funds, up to $250,000 per owner at that institution.
Revocable Trust	POD / ITF accounts, living trust accounts	Coverage can rise based on eligible beneficiaries and clean account titling.
Irrevocable Trust	Trusts with fixed terms and beneficiaries	Coverage depends on beneficiary interests and documentation recorded by the credit union.
Employee Benefit Plan	Plan deposits held for participants	Coverage can pass through to participants when recordkeeping meets insurer rules.
Business Accounts	LLC checking, sole proprietor savings	Coverage depends on business structure and how ownership is recorded.
Government Accounts	Public unit deposits	Separate categories may apply; the account title on statements drives the bucket.

Places Where Coverage Gets Lost On Paper

When people run into a gap, it’s usually from the way accounts are titled, not from the insurer refusing to pay valid insured funds.

Multiple Single Accounts At One Credit Union

If you hold checking, savings, and a certificate in your name alone at the same credit union, those balances stack into one single-ownership bucket. Separate account numbers don’t create separate coverage.

Joint Accounts With Unequal Rights

Joint coverage assumes each named owner has equal access to withdraw funds. If an account is set up with limited rights for one party, the insurance math can shift. If you’re adding someone for convenience, ask how the credit union records the account for share insurance.

Trust Accounts Missing Trust Language

Trust coverage depends on the trust being recorded on the account title and on beneficiaries being recorded in the institution’s records. If the statement shows only a person’s name, the insurer may treat it as a single account even if you intended a POD or living trust setup.

Private Insurance And State Charters: Two Edge Cases

Some credit unions are not federally insured by the NCUSIF. A subset carry private share insurance instead. If a credit union doesn’t list federal insurance, treat it as a different system and verify the insurer before placing a large balance.

Questions To Ask When Federal Insurance Is Not Listed

• Which insurer covers member deposits, and where can I read the coverage limits?
• Is coverage backed by a government guarantee, or by the insurer’s own financial capacity?
• Is there a public list of insured institutions from that insurer or regulator?

What Happens If A Federally Insured Credit Union Closes

Closures are uncommon, and resolutions are often handled with a transfer to another institution or a payout. Share insurance is designed to return insured funds up to the coverage limit, including principal and posted dividends through the closing date. If you want worked examples of how categories are calculated, the NCUA’s booklet Your Insured Funds walks through common account setups, including single, joint, retirement, and trust titles.

Moves That Keep Large Balances Covered

If you’re near the $250,000 cap at one credit union, you still have straightforward options.

Spread Funds Across Federally Insured Institutions

The cap applies per institution. Using a second federally insured credit union can restore full coverage without changing account titles.

Use Separate Ownership Buckets When They Fit Your Accounts

Joint accounts, retirement accounts, and properly recorded trust accounts can create separate insurance buckets. Keep account titles accurate and keep beneficiaries and owners up to date.

Retitle Before Large One-Time Deposits

Home sale proceeds and business transactions can push you over the cap overnight. Before the money hits, ask the credit union how the deposit will be titled and which bucket it will land in.

Run this checklist any time you open an account or move a large amount.

Check	What To Look For	Next Step If It’s Not Clear
Federal Insurance Wording	“Federally insured by NCUA” in disclosures or on statements	Ask for the insurer name in writing and a link to coverage terms.
Account Titles Match Ownership	Single, joint, trust, retirement, or business title shown clearly	Request a retitle before depositing large sums.
Beneficiaries Recorded	Beneficiary names stored in records for POD / trust accounts	Update beneficiaries and confirm how they appear on the statement.
Category Totals Under The Cap	Sum each ownership category at that credit union	Move funds to another institution or adjust titles to fit categories.
Deposit Products Separated From Investments	Deposits on one set of statements, investments on another	Ask which items are deposits covered by insurance and which are not.
Partner-Bank Terms (If Any)	Terms name the bank or credit union where deposits are held	Confirm which insurer applies before funding the product.

Two Coverage Examples

One Owner With Several Accounts

You have $120,000 in checking, $90,000 in savings, and $60,000 in a certificate, all in your name alone at one federally insured credit union. Add them: $270,000 in the single-ownership bucket. In that setup, $20,000 can sit above the cap. Moving $20,000 to another federally insured institution can bring you back under the limit.

Two Owners With A Joint Account Plus Separate IRAs

You and a spouse hold $300,000 in a joint checking account, and each of you holds an IRA share account with $200,000 at the same credit union. The joint account is in the joint bucket, while each IRA is in its own retirement bucket. Coverage can still work out cleanly when titles and rights are set up correctly.

Takeaway You Can Use Today

Credit unions are usually not FDIC-insured. In many cases, they are federally insured through the NCUA’s share insurance system. Confirm the NCUA label, group your accounts by ownership category, and add balances inside each category at one institution. If you’re near the cap, spread funds across institutions or use ownership buckets that match your real account setup.