{"id":2938,"date":"2024-03-13T07:00:00","date_gmt":"2024-03-13T14:00:00","guid":{"rendered":"https:\/\/www.cdvalet.com\/blog\/?p=2938"},"modified":"2025-12-17T12:51:19","modified_gmt":"2025-12-17T20:51:19","slug":"fdic-vs-ncua-whats-the-difference-and-is-one-potentially-better-than-the-other","status":"publish","type":"post","link":"https:\/\/www.cdvalet.com\/insights\/fdic-vs-ncua-whats-the-difference-and-is-one-potentially-better-than-the-other\/","title":{"rendered":"FDIC vs. NCUA: What\u2019s the Difference and Is One Potentially Better Than the Other?\u00a0"},"content":{"rendered":"\n

Government-backed deposit insurance protects money in deposit accounts in the unlikely event that a bank or credit union fails. Banks are insured by the Federal Deposit Insurance Corporation (FDIC), while credit unions are insured by the National Credit Union Administration (NCUA).\u00a0\u00a0<\/p>\n\n\n\n

What is the FDIC?\u00a0<\/h2>\n\n\n\n

In response to many Americans who lost their life savings when the banks failed during the Great Depression, the U.S. Congress created the FDIC (and its Deposit Insurance Fund) in 1933 to maintain stability and public confidence in the nation\u2019s financial system.\u00a0\u00a0<\/p>\n\n\n\n

FDIC-insured banks can be found by using the FDIC Bank Find tool<\/a> or looking for the FDIC signs<\/a> at the bank or on the bank website.\u00a0\u00a0<\/p>\n\n\n\n

What is the NCUA?\u00a0<\/h2>\n\n\n\n

In 1970, U.S. Congress created the NCUA, an independent federal agency that oversees the National Credit Union Share Insurance Fund (NCUSIF). The federal insurance fund insures deposits at federally insured credit unions nationwide.\u00a0\u00a0<\/p>\n\n\n\n

Credit unions designated as federal credit unions are automatically insured by the NCUA, however, those who are not are usually chartered and regulated by a state agency and can opt for NCUA insurance. To find what credit unions are federally insured look for the official NCUA insurance logo<\/a> in the office or website of the institution.\u00a0\u00a0<\/p>\n\n\n\n

FDIC vs. NCUA Insurance\u00a0<\/h2>\n\n\n\n

Deposit insurance normally goes into effect once you open an account covered by FDIC or NCUA insurance. Both types of insurance provide the same type and amount of coverage — $250,000 per insured bank and depositor — with a few minor differences in account coverage and how each entity operates.\u00a0<\/p>\n\n\n\n

Whether you choose a bank or credit union, it\u2019s important to know what types of accounts are insured and not insured. These are the general differences between coverages:  <\/p>\n\n\n\n

 <\/td>FDIC<\/strong> <\/td>NCUA<\/strong> <\/td><\/tr>
Insured Deposit Accounts<\/strong>\u00a0<\/td>Checking and savings accounts Money Market deposit accounts Negotiable order of withdrawal (NOW) accounts Certificate of Deposits (CDs)<\/a> Individual Retirement Accounts (IRAs) CDs and savings accounts Health Savings Accounts (HSAs) Coverdell Education Savings Accounts (ESAs) Self-directed defined contribution plan accounts such as Self-directed 401(k) plan and Keogh plan accounts. Cashier\u2019s checks Money orders Select prepaid cards from FDIC-backed banks <\/td>Checking and savings accounts Money Market deposit accounts Certificates accounts (share certificates and CDs) Individual retirement accounts (IRAs) CDs and savings accounts Health Savings Accounts (HSAs) Coverdell Education Savings Accounts (ESAs) Keogh Plan Accounts <\/td><\/tr>
Not Insured Accounts\u00a0<\/strong><\/td>Stocks Bonds Mutual Funds Treasury bills Annuities Life insurance policies Municipal securities  Safe deposit boxes or their contents <\/td>Stocks Bonds Mutual funds Annuities Life insurance policies Municipal securities Safe deposit boxes or their contents <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Calculating Insurance Coverage <\/h2>\n\n\n\n

The type of account (see above) and the ownership category are the two factors that determine federal deposit insurance coverage. The most common ownership categories for both banks and credit unions are:  <\/p>\n\n\n\n