In this article, we’re answering “Are credit unions FDIC insured?” The short answer is “No, they’re NCUA insured”.
Interestingly, both FDIC-insured and NCAU-insured accounts are available to both US residents and foreign non-residents who can meet the account opening demands of US banks and credit unions.
We’ll take a closer look at NCUA insurance below and discuss the nuances of credit union insurance below. We’ll also answer common questions we receive on the topic.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Are Credit Unions FDIC-insured
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
Are Credit Unions FDIC-insured?
Accounts held at credit unions are insured for up to USD 250,000 by the National Credit Union Share Insurance Fund (NCUSIF). The Federal Deposit Insurance Corporation (FDIC) does not insure credit unions.
The main difference between covered accounts insured by the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Share Insurance Fund (NCUSIF) is that the FDIC insures banks in the United States while NCUSIF insures credit unions in the United States.
Of course, there are other differences when banking in the United States, ranging from the available financial accounts US banks and credit unions offer, who can open with them, and available access to various products. But, when it comes to insurance, both banks and credit unions are similarly covered.
In other words, the amount of insurance offered to each depositor, the type of accounts insured, and even the process for recouping funds are similar between these two agencies. That said, there are a few additional nuances, which we’ll discuss below.
Before diving in any further, if this is your first time visiting GlobalBanks, don’t forget to download your FREE US Banking Starter Guide. It’s designed to help non-residents with opening bank accounts at top financial institutions in the US.
What Is the Federal Deposit Insurance Corporation?
The Federal Deposit Insurance Corporation (FDIC) is the source of depositor insurance for accounts at federally insured banks in the United States. The amount insured by the FDIC is USD 250,000 per depositor per account at federally insured banks. FDIC was created in 1933 by the Banking Act, signed by President Roosevelt.
What Is the National Credit Union Share Insurance Fund?
The National Credit Union Share Insurance Fund (NCUSIF) is the source of depositor insurance for accounts at credit unions with national insurance in the United States. NCUSIF provides USD 250,000 per depositor per account in insurance. Congress of 1970 is responsible for creating NCUSIF.
Frequently Asked Questions
Below are four of the most common questions we receive from people looking into if credit unions. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
Is NCUA as Secure as FDIC?
Yes, NCUA is as secure as the FDIC when it comes to the insurance it offers on all depositor accounts at federally insured credit unions. As the National Credit Union Administration (NCUA), their responsibility is to automatically insure every account with credit unions that have national insurance, up to the limit of USD 250,000.
Are Credit Unions Safe If Banks Collapse?
Yes, credit unions are safe if certain banks collapse. One reason for this is that credit unions tend to have significantly lower risk tolerance in terms of investments, consumer lending, and corporate lending. As a result, they typically have stronger financial positions, liquidity ratios, and capital reserves than banks.
Is Your Money Safe In a Credit Union?
Yes, your money is safe in a credit union in the United States if you maintain a balance below the federally insured maximum of USD 250,000. If you hold more than USD 250,000 in a credit union account, then the excess balance doesn’t have insurance covering excess loss during a credit union failure.
Are Credit Unions Insured By the FDIC for Up to $250,000?
Yes, credit unions are insured for up to USD 250,000. However, the National Credit Union Administration (NCUA) not the Federal Deposit Insurance Corporation (FDIC) provides the insurance.
Ready to Open Accounts With Banks in the USA?
If so, you can get access to GlobalBanks USA (our dedicated US banking service) in just a few clicks.
GlobalBanks USA is a 100% personal account opening solution. It provides direct access to our team of US banking experts.
When you join, you receive…
+ Expert suggestions on where to open US bank accounts.
+ Step-by-step support to navigate opening US bank accounts.
+ Direct introductions to helpful and responsive bankers.
+ Plus, detailed guides to maximizing the value you get from your new US bank account.
And “yes!” GlobalBanks USA helps foreigners and non-resident individuals open bank accounts.
In fact, GlobalBanks USA even helps non-resident US LLCs and foreign & offshore entities.
To learn more about GlobalBanks USA, visit the product page to see how our team can help you successfully open US bank accounts!
