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.



RELATED TERMS
  1. Federal Credit Union - FCU

    A credit union chartered and supervised by the National Credit ...
  2. Insured Financial Institution

    Any bank or savings institution that is covered by some form ...
  3. Deposit Interest Rate

    The interest rate paid by financial institutions to deposit account ...
  4. National Association Of Federal ...

    An industry trade group founded in 1967 that represents federal ...
  5. Bank Insurance

    A guarantee by the Federal Deposit Insurance Corporation (FDIC) ...
  6. Savings Association Insurance Fund ...

    A government insurance fund for savings and loans and thrift ...
Related Articles
  1. Investing

    RBS to Pay $1.1 Billion Fine to the U.S. Credit Union (RBS, DB)

    The Royal Bank of Scotland has agreed to pay a $1.1 billion fine levied by the National Credit Union Administration (NCUA) to settle the two legal claims in relation to fraudulently selling mortgage ...
  2. Personal Finance

    Handling High-Yield Savings Accounts

    Is this the savings route for you? Read on to find out what these accounts have to offer.
  3. Personal Finance

    The Main Differences between Credit Unions and Banks

    Consumers should know the main differences between credit unions and commercial banks when deciding where to do business.
  4. Insurance

    What Happens If Your Insurance Company Goes Bankrupt?

    When insurance companies go bankrupt or face financial difficulty, it's bad news for policy holders.
  5. Insurance

    How An Insurance Company Determines Your Premiums

    Find out how insurers use credit history to build an insurance score and how it could affect your bottom line.
  6. Managing Wealth

    Credit (Receivables) Insurance: Does Your Business Need It?

    This type of insurance will reimburse your business if customers don’t pay their bills. It’s not cheap, but some companies shouldn’t be without it.
  7. Insurance

    How Much Life Insurance Should You Carry?

    Learn how much - if any - insurance you really need.
RELATED FAQS
  1. Does the FDIC cover credit unions?

    Learn whether or not the FDIC insures your funds at a credit union, and what types of insurance are available at the different ... Read Answer >>
  2. Why are CDs (Certificate of Deposit) FDIC-insured?

    Find out why certificate of deposits (CDs) are insured by the FDIC and what the deposit requirements are for receiving insurance ... Read Answer >>
  3. Can your insurance company cancel your policy without notice?

    Learn about your rights as an insured when it comes to your insurance policy being canceled, including how to access your ... Read Answer >>
  4. Can companies insure their accounts receivable?

    Understand what credit insurance is and how it protects companies against payment problems they may encounter in trying to ... Read Answer >>
  5. What are the major categories of financial institutions and what are their primary ...

    Understand the various types of financial institutions that exist in today's economy, and learn the purpose each serves in ... Read Answer >>
Trading Center