FDIC vs NCUA: What's the Difference for Your Money?
Both FDIC and NCUA insure deposits up to $250,000 — but there are key differences in how they work, what they cover, and which institutions they regulate.
If you have money in a bank or credit union in the United States, your deposits are almost certainly federally insured. But by whom? And does it matter? Here's everything you need to know about FDIC and NCUA insurance.
What is the FDIC?
The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency created by the Banking Act of 1933, in the wake of the Great Depression. It insures deposits at banks and savings institutions (thrifts). When you see "Member FDIC" on a bank sign or website, it means your deposits are backed by the full faith and credit of the U.S. government up to $250,000 per depositor, per ownership category, per bank.
What is the NCUA?
The National Credit Union Administration (NCUA) is the federal equivalent for credit unions. Created in 1970, the NCUA operates the National Credit Union Share Insurance Fund (NCUSIF), which covers deposits — called "shares" — at federal and most state-chartered credit unions. Coverage is identical: $250,000 per member, per ownership category, per credit union.
Key differences
- Who they regulate: FDIC = banks and savings institutions. NCUA = credit unions.
- Funding: The FDIC is funded by premiums paid by member banks. The NCUSIF is funded by credit unions depositing 1% of their insured shares.
- Ownership model: Banks are for-profit, shareholder-owned. Credit unions are non-profit, member-owned cooperatives.
- Access: Anyone can open a bank account. Credit unions require membership.
What's covered — and what isn't
Both FDIC and NCUA cover: checking accounts, savings accounts, money market accounts, and CDs. Neither covers: stocks, bonds, mutual funds, life insurance policies, annuities, or securities — even when purchased through a bank or credit union.
What happens when a bank or credit union fails?
The FDIC or NCUA steps in as receiver, typically arranging for another institution to assume the failed institution's deposits. In most cases, account holders gain access to insured funds within a few business days. No insured depositor has ever lost a dollar of FDIC-insured funds since the agency's founding in 1933.
How to check if your institution is insured
Use the FDIC's BankFind tool (banks.data.fdic.gov) for banks, or the NCUA's Research a Credit Union tool (ncua.gov) for credit unions. Bankzia also displays FDIC certificate numbers on every bank profile page.
Data sources: FDIC BankFind Suite (quarterly call reports), NCUA Financial Performance Reports, CFPB Consumer Complaint Database. Financial figures reflect the most recently published quarterly call report data. Complaint data is updated as new CFPB records are published. The Bankzia Trust Grade is a proprietary composite score — not a government rating. Deposits at all listed institutions are federally insured up to $250,000 per depositor, per ownership category.
Frequently Asked Questions
Betty Jones has spent 12 years covering banking regulation, consumer finance, and the economics of trust in financial institutions. She started her career at a regional newspaper covering the Federal Reserve and FDIC regulatory beat before moving into financial media. Betty holds a journalism degree from the University of Texas at Austin and has been a contributing analyst at several fintech publications. She built Bankzia's editorial framework and is the primary author of the Trust Grade methodology explainer series.
