Money you keep in a credit union is safe as long as the credit union is federally insured. Deposits at credit unions insured by the National Credit Union Share Insurance Fund (NCUSIF) are protected up to $250,000 per depositor, per ownership category, and that protection carries the full faith and credit of the United States government — the same guarantee that stands behind FDIC-insured bank deposits. The one thing to verify is that your credit union actually carries federal insurance, because a small number do not.
Who Backs Your Credit Union Deposits
The National Credit Union Administration is an independent federal agency that charters, regulates, and insures credit unions. It runs the NCUSIF, which covers member deposits at every federal credit union and at the vast majority of state-chartered credit unions.1National Credit Union Administration. Share Insurance Coverage If an insured credit union closes, the fund reimburses each member’s insured balance dollar for dollar, including dividends posted through the date of closing.
Federally insured credit unions are required to display the official NCUA insurance sign at teller stations, on their website, and wherever they accept deposits.1National Credit Union Administration. Share Insurance Coverage Look for that sign, or search the NCUA’s Credit Union Locator tool at ncua.gov to confirm any institution’s insured status.
The $250,000 Limit
The standard share insurance amount is $250,000 per depositor, per federally insured credit union, for each ownership category. Congress made that limit permanent through the Dodd-Frank Act in 2010.2National Credit Union Administration. Credit Union Share Insurance Brochure
Multiple individual accounts you hold at the same credit union — a share savings account and a share certificate, for instance — are added together and insured under a single $250,000 limit. Coverage applies separately at each federally insured credit union, so $250,000 at one and $250,000 at another gives you $500,000 in total protection.
Products that fall under share insurance include:
- Share savings accounts (the credit union version of a savings account)
- Share draft accounts (the credit union version of a checking account)
- Money market accounts
- Share certificates (the credit union version of a certificate of deposit), insured for the full term
Not Every Credit Union Is Federally Insured
Some state-chartered credit unions carry private share insurance instead of NCUA coverage. The largest private insurer, American Share Insurance, offers $250,000 of coverage per account with no limit on the number of insured accounts a member can hold. Private share insurance is not backed by the full faith and credit of the United States government.3American Share Insurance. American Share Insurance
If you are not sure which type of insurance your credit union carries, check the NCUA sign, ask the credit union directly, or use the NCUA locator to verify.
Getting More Than $250,000 Insured at One Credit Union
You do not have to open accounts at a second institution to get past $250,000 in coverage. Because the NCUA insures each ownership category separately, a single member can hold well above that amount at one credit union by structuring accounts under different legal ownership types.
Joint Accounts
Joint accounts owned by two or more people are insured separately from each co-owner’s individual accounts. Each co-owner’s share of all joint accounts at one credit union is insured up to $250,000, so a two-person joint account can carry up to $500,000 in coverage.4eCFR. 12 CFR 745.8 – Joint Ownership Accounts That protection sits on top of whatever each person holds individually at the same credit union.
Retirement Accounts
IRA and Keogh retirement accounts get their own insurance category. Traditional IRAs and Roth IRAs at the same credit union are combined and insured together up to $250,000. A Keogh account is insured separately from your IRA and Roth IRA balances, adding another $250,000 of retirement-account coverage at the same institution for self-employed members.5eCFR. 12 CFR 745.9-2 – Retirement and Other Employee Benefit Plan Accounts
Trust and Payable-on-Death Accounts
Trust accounts, including informal payable-on-death (POD) or “in trust for” arrangements, currently receive separate coverage based on the number of qualifying beneficiaries named in the credit union’s records. Each beneficiary adds up to $250,000 in coverage for the account owner at that credit union.6National Credit Union Administration. Payable-on-Death Accounts
A rule change takes effect on December 1, 2026. The NCUA is merging the current revocable and irrevocable trust categories into a single “trust accounts” category. Under the new rule, a grantor’s trust deposits at one credit union will be insured at $250,000 per beneficiary, counting a maximum of five beneficiaries, for a per-grantor ceiling of $1,250,000 at that institution regardless of how many beneficiaries are named.7Federal Register. Simplification of Share Insurance Rules If you rely on POD or trust designations for extended coverage, review your beneficiary list before that date.
What Share Insurance Does Not Cover
Some products offered at or through a credit union are not deposits and are not covered by the NCUSIF. When these are marketed, the credit union must tell members that the products are not federally insured, are not obligations of the credit union, and involve investment risk.8National Credit Union Administration. Sales of Nondeposit Investments Uninsured items include:
- Stocks, bonds, and mutual funds
- Annuities and life insurance policies
- Cryptocurrency and other digital assets, whether held by the credit union, a third-party vendor, or an outside exchange or wallet9National Credit Union Administration. Financial Technology and Digital Assets
- Safe deposit boxes and their contents1National Credit Union Administration. Share Insurance Coverage
What Happens If a Credit Union Fails
When a federally insured credit union becomes insolvent, the NCUA Board closes it and takes over as liquidating agent.10Office of the Law Revision Counsel. 12 USC 1787 – Payment of Insurance The agency then pays insured deposits either by issuing checks or by transferring balances to another insured credit union in the area. In practice, the NCUA typically pays out within three days of a closure.11MyCreditUnion.gov. Your Insured Funds
Checks go to each member’s last known address on file, minus any outstanding loan balances owed to the institution. Members who do not claim their insured funds within 18 months after the liquidating agent is appointed lose their right to collect from the NCUSIF, though their claim against the closed credit union’s remaining assets revives at that point.10Office of the Law Revision Counsel. 12 USC 1787 – Payment of Insurance Keep your address and contact details current with your credit union so a payment is not delayed if a closure ever happens.
How to Check Your Own Coverage
The NCUA offers a free Share Insurance Estimator at mycreditunion.gov where you can enter your account types, balances, and ownership categories to see exactly how much of your money is insured.12MyCreditUnion.gov. Share Insurance Estimator Run it if you hold accounts in more than one ownership category, or if your balance at a single credit union is getting close to $250,000. If any portion of your money sits above the insured limit, you can open an account at a second federally insured credit union, add a joint owner, or name beneficiaries on a POD account to bring the full balance back under coverage.