In 1970, Congress created the National Credit Union Share Insurance Fund (NCUSIF). (1) The NCUSIF “protects members’ accounts in federally insured credit unions, in the unlikely event of a credit union failure. The NCUSIF covers the balance of each member’s account, dollar-for-dollar up to the insurance limit.” (2) The NCUSIF protects your checking accounts, savings accounts, money market accounts and certificates of deposits up to $250,000. (3)

According to the Nation Credit Union Administration, “…no member has ever lost a penny from accounts insured by the NCUSIF.” (4)

This insurance makes putting your money in a credit union safer than keeping it at home. The NCUSIF insurance is free and is included for all members of credit unions, no matter the amount of money that you have in your account.

When you deposit your money into an account at a standard bank, your funds are typically covered by the Federal Deposit Insurance Corporation (FDIC). When you put your money into an account at a credit union, your funds are typically covered by the NCUSIF.

What is the difference between the two? Here’s how they compare: (5)

• The NCUSIF and FDIC serve as independent federal agencies that insure customer deposits.
• Each entity insures deposits up to $250,000, per person, per registered account, per institution.
• Both entities insure money in the following types of accounts: checking, savings, money market, CD, and certain other accounts.
• Neither entity insures the following: stocks, bonds, Treasury securities, mutual funds, annuities, or life insurance.

A primary difference between the insurance funds is how they were originally funded. Credit unions funded the NCUSIF, and taxpayers funded the FDIC. More details here.

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1. https://www.bankrate.com/glossary/n/national-credit-union-share-insurance-fund-ncusif/

2. https://www.mycreditunion.gov/knowledgebase/what-purpose-ncusif

3. https://www.thebalance.com/national-credit-union-share-insurance-fund-ncusif-315404

4. https://www.law.cornell.edu/wex/national_credit_union_share_insurance_fund_(ncusif)

5. https://www.thebalance.com/national-credit-union-share-insurance-fund-ncusif-315404

6. https://www.mycreditunion.gov/about-credit-unions/credit-union-different-than-a-bank