NCUA-Insured Institution


DEFINITION of 'NCUA-Insured Institution'

A finance institution that is a participant of the National Credit Union Administration (NCUA) program. Most NCUA insured institutions are federal and state chartered credit unions and savings banks. Accounts at NCUA-insured institutions are usually insured through the National Credit Union Share Insurance Fund (NCUSIF). Accounts insured in NCUA insured institutions are savings, share drafts (checking), money markets, share certificates (CDs), Individual Retirement Accounts (IRA) and Revocable Trust Accounts. The maximum dollar amount that is insured in a NCUA institution is $250,000 per institution. In other words, a depositor with $1 million can fully insure this amount by depositing $250,000 in four different NCUA institutions.

BREAKING DOWN 'NCUA-Insured Institution'

The National Credit Union Association (NCUA) is equivalent to the Federal Deposit Insurance Corporation (FDIC). The only differences are that the NCUA deals only with credit institutions and that the NCUA uses the National Credit Union Share Insurance Fund (NCUSIF), while the FDIC uses the Deposit Insurance Fund. Both insurance funds are fully backed in good faith by the U.S. Government.

  1. Credit Union

    Member-owned financial co-operative. These institutions are created ...
  2. Federal Credit Union - FCU

    A credit union chartered and supervised by the National Credit ...
  3. National Credit Union Administration ...

    An agency of the United States federal government that was created ...
  4. Federal Deposit Insurance Corporation ...

    The U.S. corporation insuring deposits in the U.S. against bank ...
  5. Insurance

    A contract (policy) in which an individual or entity receives ...
  6. Bank

    A financial institution licensed as a receiver of deposits. There ...
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