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FDIC vs. NCUA Insurance: What Protects Your Deposits?

By · Updated · 3 min read

FDIC insurance protects eligible deposits at insured banks. The NCUA administers federal share insurance for eligible accounts at federally insured credit unions. Coverage depends on the institution, ownership category, and balances. It is protection against an insured institution’s failure, not a guarantee for every financial product.

Identify which institution holds the money

For the FDIC, the standard limit is $250,000 per depositor, per insured bank, per ownership category. For federally insured credit unions, the basic single-ownership limit is $250,000 per member-owner at that credit union. Other ownership categories have their own requirements.

You do not buy this federal coverage as a separate policy for an eligible insured deposit. Verify the institution directly and use the agency’s coverage tools if ownership arrangements are more complex. Do not assume every credit union is federally insured.

Sources: FDIC: Deposit insurance FAQs · NCUA: Share insurance coverage

Add together accounts in the same category

Consider one person with no named beneficiaries who has $200,000 in savings and $70,000 in a CD at the same FDIC-insured bank. Assuming both belong to the single-account category, the combined $270,000 exceeds its $250,000 limit by $20,000.

Opening another account or visiting another branch of the same bank does not create another bank-level limit. A different ownership category can change coverage only when its requirements are actually met. Include accrued interest when checking how close the total is to a limit.

Add together accounts in the same category: comparison
Illustrative single-owner deposits at one bankAmount
Savings$200,000
Certificate of deposit$70,000
Combined balance$270,000
Standard category limit$250,000
Amount above that limit$20,000

Sources: FDIC: Your insured deposits

Distinguish deposits from investments

Eligible checking, savings, and bank CDs can have FDIC coverage. Stocks, bonds, and mutual funds do not become FDIC-insured because they were purchased through a bank. Their value can move with investment risks.

The similar names of money market products deserve attention. A money market deposit account is a bank deposit; a money market mutual fund is an investment. Read the product description before deciding which protection applies.

Sources: FDIC: Deposit insurance FAQs

Look beyond the financial app’s brand

A nonbank app may arrange deposits at a partner bank, but the app company itself is not FDIC-insured. Any pass-through coverage depends on funds reaching an insured bank and satisfying recordkeeping and other requirements.

FDIC coverage does not protect against the nonbank company’s own bankruptcy. Identify the partner institution, how funds are held, and whether other deposits at that same bank share the applicable limit. Also distinguish deposit insurance from the separate processes for fraud or transaction disputes.

  1. Find the institution’s legal name.
  2. Verify insurance status with the relevant federal agency.
  3. List balances by institution and ownership category.
  4. Read any intermediary’s custody and coverage disclosures.

Sources: FDIC: Banking with third-party apps · FDIC: Your insured deposits

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Terms in this guide

Sources and further reading

Examples are illustrative and focus on U.S. personal finance. This guide is educational, not individual financial, investment, tax, or legal advice. Read our editorial approach or report a correction.

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