One of the main concerns for individuals interested in becoming credit union members is often whether or not their money will be safe. Although not all credit unions offer this service, federal credit unions like TPFCU have safeguards in place to insure deposits through federal agencies just like traditional banks.
However, unlike regular financial institutions, credit unions aren’t insured by the FDIC. Instead, they have NCUA share insurance that protects depositors in the very rare instance that a credit union fails.
What Is NCUA Insurance?
The National Credit Union Administration (or NCUA) is an independent government agency that regulates, charters, and supervises federal credit unions. It also manages the National Credit Union Share Insurance Fund, which ensures credit unions account holders’ funds are federally insured.
NCUA insurance is a safeguard for anyone making use of credit union banking services so that, if the credit union fails, they can recover the money they deposited.
The NCUA insures up to $250,000 per depositor, per insured credit union, for each single ownership account category.
As a federal credit union, TPFCU members are covered by NCUA insurance. As a result, you can confidently open an account and make use of our services while knowing your money is protected no matter what the future holds.
NCUA Coverage, Limits, and Exclusions
The NCUA offers credit union members insurance coverage up to $250,000 for their single ownership accounts, including Traditional and Roth IRAs.
These credit union accounts include:
- Regular shares
- Savings accounts
- Share drafts (similar to checking accounts)
- Money market accounts
- Certificates of deposit
- Retirement accounts
- Joint Accounts
However, NCUA coverage does not extend to:
- Mutual funds
- Stocks
- Bonds
- Life insurance policies
- Third-party annuities
- Contents of safe deposit boxes
Should you need additional coverage for other products not mentioned above, TPFCU offers separate insurance options for the following:
- Trust accounts
- Revocable trusts
- Irrevocable trusts
For more information on the types of insurance available, see our print out guide on how your account is insured.
Benefits of NCUA Insurance
Insurance protection from the NCUA offers many benefits. Credit unions are often a great medium through which to access competitive rates on savings and specialized products to help you achieve your financial goals.
However, many would-be members question the reliability of putting their hard-earned money anywhere other than a bank. With NCUA insurance, you’re guaranteed financial stability at any federal credit union so you can enjoy complete peace of mind. Should your insured credit union fail, it typically takes just days for you to have full access to your funds once again.
Keep Your Money Safe with TPFCU
At TPFCU we are dedicated to helping you safely reach your financial goals. By opening a deposit account or online savings account or taking out a debit card or credit card, you can rest assured you are accessing the best rates and service we can provide.
With no monthly maintenance fees and high interest on savings, we can help you save for retirement, pay off debt, and become financially independent while keeping the money you entrust to our care safe.
To become a member of TPFCU today, or to learn more about the services we offer, get in touch with our helpful team of advisors today.
FAQs
The NCUA is the National Credit Union Administration, an independent federal agency that regulates, charters, and supervises federal credit unions and the National Credit Union Share Insurance Fund.
NCUA coverage refers to NCUA insurance that covers $250,000 in account balances per depositor, per federally insured credit union.
The NCUA offers deposit insurance coverage for a variety of accounts. Each single ownership account at a federal credit union is insured for up to $250,000.
The Federal Deposit Insurance Corporation (FDIC) offers federal insurance to banks while the NCUA only applies to federal credit union accounts.
As long as your money is only deposited with federally insured credit unions, up to $250,000 of your deposits are protected per credit union.
