All financial institutions are insured by the government. But the insuring bodies for a credit union are slightly different than that of a bank.
So, is a credit union insured by the FDIC? Or are they insured by something else?
‘Yes’, and ‘No’.
We are NOT insured by FDIC. Your deposits ARE insured by NCUA.
Credit Union funds are still insured by the full faith of the Federal Government and the coverage is equal to you. The difference is that credit unions fund a portion of their insurance fund annually, so over the years, we do not have to rely upon taxpayers dollars in order to fund our coverage.
What exactly is the NCUA?
From the NCUA website itself…
“The mission of the NCUA is to provide, through regulation and supervision, a safe and sound credit union system, which promotes confidence in the national system of cooperative credit. Learn more about NCUA’s mission, culture, values and how we ensure millions of Americans can safely and confidently use credit unions for their financial needs.”
For more information on the NCUA, you can visit the following:
Federal Credit Union Act
NCUA rules and regulations
Federal Credit Union Bylaws