Most likely, you’ve heard of the FDIC, but not many are aware or heard of the NCUA. While both play an important role in protecting your finances they are unique in their own ways.
The Federal Deposit Insurance Corporation is an independent government agency that protects the customers’ deposits in banks and thrift institutions in case the bank fails. The FDIC bankers’ insurance covers all deposit accounts, including checking, savings, certificates of deposit and money market accounts up to $250,000 per account.
The National Credit Union Share Insurance Fund is similar to the FDIC in that it protects individual accounts up to $250,000. A major difference that separates the two is that the NCUA insurance covers regular shares and share draft accounts which are unique to credit unions and do not exist with banks. However, they both cover the same amount and covers different accounts. If you’re interested, keep reading and learn which one is safer for your specific needs!
|HSBC Premier checking account: Earn $450 bonus for eligible new customers who open a new HSBC Premier checking account and complete the following qualifying activities. Make recurring monthly Direct Deposits totaling at least $5,000. Member FDIC Terms|
|Huntington 25 Checking: Earn $300 bonus when you open a Huntington 25 Checking account and make cumulative new money deposits of at least $25,000 within 60 days of account opening. The $300 bonus will be deposited into your Huntington 25 Checking account after all requirements are met. Apply Now---Huntington 25 Checking Review|
|Discover Online Savings Account: Earn $200 Bonus/$150 Bonus with promo code HMB21 by 12/15/2021 along with a competitive interest rate of 0.40% APY. Fund your first savings account with a minimum of $25K within 30 days of account open date to earn the $200 Bonus. No minimum opening deposit, no minimum balance requirement, and no monthly fees. See advertiser website for full details.
Apply Now---Discover Savings Review
NCUA vs FDIC Insurance
- The FDIC insures qualifying accounts up to the limit per depositor, per institution. That means if you hold two accounts at one bank, both with balances that meet the maximum insurance amount, only half of your money is protected.
- Even if your account has bank insurance, it doesn’t necessarily mean that all of your accounts are protected even if the amount is under $250,000. The FDIC won’t insure other products that your bank may offer.
- Both the FDIC and the NCUA does not insure money invested in:
- Mutual Funds
- Life Insurance policies
- Only federal credit unions are automatically covered by NCUA insurance and some state institutions are not insured by the NCUA. So they do not offer you the same protection in the case of your credit union failing.
NCUA vs FDIC Similarities
- They both cover up to the amount of $250,000 on eligible accounts
- Not all credit unions are covered by NCUA and not all banks are covered by the FDIC, therefore make sure to contact your bank to ensure that your funds are protected
- Neither of them are funded by tax dollars
|Applies to banks||Applies to credit unions|
|Insures $250,000 per person, per institution, per ownership category||Insures $250,000 per person, per institution, per ownership category|
|Covers deposit accounts: checking, savings, money market deposit accounts, and CDs||Covers: Savings accounts, share draft (checking) accounts, certificates of deposit and money market accounts|
Above we have listed the general points which explained whether the FDIC or NCUA insurance is “safer”. In conclusion, both cover the same amount and it really depends on whether you are banking with a credit union or a bank. It comes down to what your needs are and which accounts you want to be insured.
As explained above, not all banks or credit unions are covered, therefore it is recommended that you contact your institution ensure that your money is properly protected. Also, don’t forget to read our full listing of Credit Unions Anyone Can Join ,Credit Unions vs. Banks Comparison, and also check out the latest Bank Bonuses nationwide for all your banking needs!
|Chase Business Complete BankingSM: Earn $300 bonus when you open a new Chase Business Complete BankingSM account and deposit $2,000 or more in new money within 30 business days & maintain that balance for 60 days, and complete 5 qualifying transactions within 90 days. Chase offers financial products and services that let you bank when and how you want. Get Coupon---Chase Business Checking Review|
|Huntington Unlimited Plus Business Checking: Earn $750 bonus when you open a Huntington Unlimited Plus Business Checking account and make total deposits of at least $20,000 within 60 days of account opening. The $750 bonus will be deposited into your account after all requirements are met. This account is for larger businesses with high monthly transaction volume. Apply Now---Huntington Unlimited Plus Business Checking Review|
|Huntington Unlimited Business Checking: Earn $400 bonus when you open a Huntington Unlimited Business Checking account and make total deposits of at least $5,000 within 60 days of account opening. The $400 bonus will be deposited into your account after all requirements are met. This account is for businesses with higher checking activity and greater cash flow needs. Apply Now---Huntington Unlimited Business Checking Review|
|Huntington Business Checking 100: Earn $200 bonus when you open a Huntington Business 100 Checking account and make total deposits of at least $5,000 within 60 days of account opening. The $200 bonus will be deposited into your account after all requirements are met. This account is ideal for start-ups and small businesses with lower balances and checking activity. Apply Now---Huntington Business Checking 100 Review|
|Axos Bank Basic Business Checking: Earn $100 bonus when you open a new Axos Bank Basic Business Checking Account. The average daily balance of the account must be at least $5,000 in the first three months after account opening, in order to qualify for the $100 bonus.
Apply Now---Axos Bank Business Checking Review