The NCUA insures credit union deposits up to $250,000 per depositor, per institution, per ownership category, providing the same protection as FDIC insurance at banks. Joint accounts receive $250,000 coverage per owner, and new trust account rules will simplify coverage, maxing out at $1,250,000 per owner by December 1, 2026.

NCUA insurance guarantees your credit union deposits with the full backing of the U.S. government, ensuring your money is as safe as it would be in a bank. The agency steps in to protect members in the rare event of a credit union failure, finding another credit union to take over or liquidating the institution.

The NCUA provides straightforward coverage of up to $250,000 per depositor, per federally insured credit union, in each ownership category, automatically applied when you open an account. Credit union members can rest assured that their deposits are secure and protected by the federal government.

The NCUA insures deposit accounts at credit unions up to $250,000, similar to the FDIC’s coverage at banks, both backed by the U.S. government. The main difference is the institutions they cover, with the NCUA insuring credit unions and the FDIC insuring banks.

Before choosing between a credit union or bank, know that both the NCUA and FDIC offer robust protection for your deposits, with $250,000 in coverage per depositor, per institution, per ownership category. Your decision should not hinge on which federal agency provides insurance.

All federal credit unions are insured by the NCUA, while some state-chartered credit unions may opt for private insurance. Before opening an account, verify your credit union’s insurance status through the NCUA’s searchable database to ensure your deposits are protected.

Read more at Yahoo Finance: What it is and how it keeps your credit union deposits safe