FDIC vs. NCUA: How your savings are protected
Key takeaways
Both the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) provide up to $250,000 in protection per depositor, per institution, per ownership category.
Both agencies are independent federal entities backed by the full faith and credit of the U.S. government. This means your insured funds are protected against the failure of the insured institution regardless of whether you choose a bank or a credit union.
Savers don’t need to apply for protection from either the FDIC or the NCUA, as it’s automatically applied to eligible accounts at all insured financial institutions.
Understanding federal deposit protection: FDIC and NCUA
When choosing where you want to store and manage your money, security is often a primary concern.
In the United States, two federal agencies play an important role in protecting your funds while they’re kept in a bank or credit union: the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA).
These two agencies serve different types of financial institutions. The FDIC oversees banks, and the NCUA oversees credit unions. Their shared core mission is to maintain stability in the financial system and protect your assets. And they’re effective. No depositor has lost a penny of insured funds due to institutional failure since they were established.
How FDIC insurance works for bank deposits
The FDIC is an independent agency of the U.S. government. It protects depositors at banks and savings associations. While the FDIC is backed by the credit of the United States government, it’s funded by insurance premiums on FDIC-insured institutions and the interest earned on funds invested in U.S. government obligations.
Coverage limits and eligible accounts
The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. This applies to several common product types, including:
High-yield savings accounts (HYSAs)
Certificates of deposit (CDs)
Money market deposit accounts (MMDAs)
Checking accounts
It’s important to note that FDIC insurance does not cover money invested in products such as stocks, bonds, mutual funds, or annuities, even if they were purchased through a bank.
How NCUA insurance works for credit union members
The NCUA manages the National Credit Union Share Insurance Fund (NCUSIF) to protect members of federally-insured credit unions.
Because credit unions are member-owned cooperatives, deposits are technically called shares. However, they receive the same level of federal protection as bank deposits.
Like the FDIC, the NCUA provides a standard share insurance amount of $250,000 per share owner, per insured credit union, for each account ownership category. This coverage is also backed by the full faith and credit of the U.S. Government.
Key similarities and differences: FDIC vs. NCUA
While the agencies operate separately, the practical experience for a saver is virtually the same.
Feature | FDIC (Banks) | NCUA (Credit Unions) |
Standard Limit | $250,000 per depositor for each account ownership category | $250,000 per share owner for each account ownership category |
Backing | Full faith and credit of the U.S. government | Full faith and credit of the U.S. government |
Account Types | Savings, Checking, CDs, MMAs | Shares, Share Drafts, Share Certificates |
Ownership Categories | Single, Joint, Trusts, IRAs, | Single, Joint, Trusts, IRAs |
Choosing between a bank and a credit union
Since the level of federal protection is equivalent, you can take other factors into account when choosing between a bank or a credit union.
Banks are for-profit institutions often accessible to the general public, while credit unions are not-for-profit and require members to meet specific eligibility criteria based on their location, employer, or affiliations.
The Raisin marketplace simplifies this choice by providing access to both FDIC-insured banks and NCUA-insured credit unions. You can easily move your money between banks and credit unions to take advantage of competitive rates regardless of the type of institution you’re currently storing your money in.
Bottom line
The choice between FDIC and NCUA protection isn’t a matter of one being safer than the other. Both offer up to $250,000 in coverage per depositor, per institution, per ownership category, in case of the failure of the insured institution.
This means that whether you prefer the broad accessibility of a traditional bank or the member-focused model of a credit union, your principal is protected up to federal limits. By utilizing a platform like Raisin, you can easily manage funds across multiple insured institutions to ensure your total balance remains within federal limits while benefiting from various savings structures.
Frequently asked questions
Is NCUA as safe as FDIC?
Yes, both the NCUA and the FDIC provide the same $250,000 standard insurance limit per depositor, per institution, for each ownership category. Most importantly, both are backed by the full faith and credit of the U.S. government.
This means that your funds are equally protected whether they are held in a federally insured bank or a federally insured credit union.
What happens to my money if a credit union fails?
If a federally insured credit union fails, the NCUA typically acts within five business days to either facilitate a merger with a healthy institution or provide a direct payment to members. Insured funds are returned dollar-for-dollar, including any dividends earned up to the date of the closure. This process ensures that members maintain access to their protected savings without loss.
Does FDIC insurance cover more than $250,000?
While the standard limit is $250,000 in coverage for FDIC insurance, you can have a higher total amount of insured coverage at one bank by utilizing different ownership categories.
For instance, you may have $250,000 in an individual retirement account (IRA) and another $250,000 of coverage for your portion of a joint account. Alternatively, spreading your funds across multiple FDIC-insured institutions allows you to protect a larger total balance.
Are all credit unions NCUA-insured?
Most credit unions are federally insured by the NCUA, but some state-chartered institutions may opt for private insurance instead. Critically, private insurance is not backed by the federal government. To ensure your money is protected by a federal guarantee, look for the official NCUA logo at the institution or verify their status through the NCUA’s online research tool.
The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
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*APY means Annual Percentage Yield. APY is accurate as of May 28, 2026. Interest rate and APY may change after initial deposit depending on the terms of the specific product selected. Minimum opening deposit is $1.00.
Raisin is not an FDIC-insured bank, and FDIC deposit insurance only covers the failure of an insured bank.
Raisin is not an NCUA-insured credit union. NCUA deposit insurance only covers the failure of an insured credit union.
Raisin does not hold any customer funds. Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodial Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through Raisin.com. The Custodial Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered by the applicable bank or credit union through Raisin.com. Each customer also authorizes the Service Bank to move funds among the various banks and credit unions at the customer’s request. First International Bank & Trust (FIBT), Member FDIC, is the Service Bank. Bell Bank and Starion Bank, each Member FDIC, are the Custodial Banks.
†Based on $250,000 in FDIC or NCUA insurance coverage per insurable category of ownership at each partner bank or credit union on the Raisin platform (each a "Product Bank"), when aggregated with all other deposits held by you at such Product Bank and in the same insurable category. Deposits made through Raisin will be eligible to receive deposit insurance from the FDIC or the NCUA (each a "Deposit Insurer") in accordance with and up to the maximum amount permitted by law at each Product Bank. Raisin is not a bank or credit union and does not hold any customer funds. Funds are held at FDIC-insured banks and NCUA-insured credit unions. Deposit insurance covers the failure of an insured bank or credit union. Certain conditions must be satisfied for pass through deposit insurance coverage to apply. Customers may choose to deposit funds with identically registered accounts at different Product Banks on the Raisin platform to be eligible for Deposit Insurer coverage up to $10 million for individual accounts and $20 million for joint accounts when at least 40 Product Banks are utilized. Please be aware, however, that any deposits you have at a Product Bank, whether through the Raisin platform or outside the Raisin platform, that you may hold in the same capacity (such as in an individual capacity or joint capacity) count toward the applicable Deposit Insurer's deposit insurance maximum amount, and any such amounts that you hold in the same capacity at a Product Bank that exceed the maximum insurance coverage by the applicable Deposit Insurer will not be insured. For more information on FDIC deposit insurance, please see here. For more information on the NCUA share insurance fund, please see here. You are solely responsible for monitoring the amount of funds you have on deposit at each a Product Bank, whether through the Raisin platform or outside the Raisin platform, to confirm that the deposits you hold in the same capacity at each Product Bank do not exceed the maximum deposit insurance coverage provided by the applicable Deposit Insurer.