Deposits Are Safe in Federally Insured Credit Unions (2024)

FAQs

Deposits Are Safe in Federally Insured Credit Unions? ›

All deposits at federally insured credit unions are protected by the National Credit Union Share Insurance Fund

Are Credit Unions FDIC insured by the government? No, the Federal Deposit Insurance Corporation (FDIC) only insures deposits in banks. Credit unions have their own insurance fund, run by the National Credit Union Administration (NCUA).

Just like banks, credit unions are federally insured; however, credit unions are not insured by the Federal Deposit Insurance Corporation (FDIC). Instead, the National Credit Union Administration (NCUA) is the federal insurer of credit unions, making them just as safe as traditional banks.

One of the only differences between NCUA and FDIC coverage is that the FDIC will also insure cashier's checks and money orders. Otherwise, banks and credit unions are equally protected, and your deposit accounts are safe with either option.

All your SAFE Credit Union funds are NCUA insured (much like FDIC for a bank) to at least $250,000. Myth – The minimum deposit and ongoing balance requirement is higher than I can afford.

Experts told us that credit unions do fail, like banks (which are also generally safe), but rarely. And deposits up to $250,000 at federally insured credit unions are guaranteed, just as they are at banks.

A: Yes. The FDIC insures deposits according to the ownership category in which the funds are insured and how the accounts are titled. The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per ownership category.

National Credit Union Administration (NCUA) credit unions had seven conservatorships/liquidations in 2022 and two so far in 2023. While credit unions have experienced several failures in 2022, there were no Federal Deposit Insurance Corp.

Credit unions tend to have fewer branches than traditional banks. A credit union may not be close to where you live or work, which could be a problem unless your credit union is part of a shared branch network and/or a large ATM network such as Allpoint or MoneyPass.

Credit unions are generally considered to be safer than banks during economic downturns due to their conservative approach to risk and their emphasis on financial robustness.

Are credit unions safer than banks during a recession? ›

bank in a recession, the credit union is likely to fare a little better. Both can be hit hard by tough economic conditions, but credit unions were statistically less likely to fail during the Great Recession. But no matter which you go with, you shouldn't worry about losing money.

If a couple has a joint money market account, a joint savings account, and a joint share certificate at the same insured credit union, each co-owner's share of the three accounts is added together and insured up to $250,000 per owner, providing up to $500,000 in coverage for the couple's joint accounts.

Cons. Now, for the minuses: Money that exceeds the limit won't be covered. Should you have more than $250,000 in all the insured deposit accounts with a bank, keeping it all in one place doesn't make sense.

SAFE Credit Union is headquartered in Folsom and is the 16^th largest credit union in the state of California. It is also the 85^th largest credit union in the nation. It was established in 1940 and as of December of 2023, it had grown to 751 employees and 235,222 members at 21 locations.

Which is Safer, a Bank or a Credit Union? As long as you are banking at a federally insured institution, whether it is a credit union insured by the NCUA or a bank by the FDIC, your money is equally safe. Credit unions are owned by the members—your savings account at a credit union is a share of ownership.

SAFE Credit Union has served its members with honesty, integrity, and innovative solutions since 1940, growing from 10 founding members to more than 240,000 today.

FDIC insurance covers deposits in all types of accounts at FDIC-insured banks, but it does not cover non-deposit investment products, even those offered by FDIC-insured banks. Additionally, FDIC deposit insurance doesn't cover default or bankruptcy of any non-FDIC-insured institution.