FDIC/NCUA Insured Accounts
What is FDIC Insurance?
The Federal Deposit Insurance Corporation (FDIC) is a U.S. government agency that protects depositors by insuring deposits held at member banks. FDIC insurance covers deposit accounts such as checking, savings, money market accounts, and certificates of deposit (CDs), up to the legal limit per depositor, per insured bank.
What is NCUA Insurance?
The National Credit Union Administration (NCUA) provides a similar insurance program for credit union members. NCUA insurance protects depositors' funds in federally insured credit unions, covering similar types of accounts up to applicable limits.
Coverage Limits
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Both FDIC and NCUA insurance typically cover up to $250,000 per depositor, per institution, for each account ownership category.
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This insurance protects depositors against the loss of their insured deposits if the bank or credit union fails.
Key Benefits
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Peace of Mind: Depositors can be confident their funds are safe up to insured limits.
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No Cost to Depositors: Insurance is automatically provided and funded by premiums paid by member institutions.
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Wide Coverage: Applies to most deposit accounts, including checking, savings, CDs, and money market accounts.
What is Not Covered?
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Investments such as stocks, bonds, mutual funds, or annuities—even if purchased through a bank or credit union—are not insured.
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Losses due to theft or fraud unrelated to bank failure are not covered.
Summary
FDIC and NCUA insurance programs provide essential protection for depositors by guaranteeing their deposits up to a set limit, ensuring the safety and stability of the U.S. banking and credit union system.