Are Credit Unions FDIC Insured?

You’ve been reading about how great it can be to drop your bank and find a credit union near Detroit or Romulus, and now you’re wondering if credit unions aren’t too good to be true — you’ve just discovered that credit unions are not FDIC insured. The FDIC only insured deposits in banks and savings and loans institutions, and as we’ve said before, credit unions are different. That doesn’t mean your money isn’t protected, though — credit unions are insured by the National Credit Union Share Insurance Fund (NCUSIF).


So, if a credit union like PSCU is able to offer comparable services to Detroit banks, why isn’t it protected by the FDIC? It’s because you become a member — essentially a part-owner — of the credit union when you join, and that is a very different relationship than depositing your money for a bank to look after. At this point, we don’t think you’ll be surprised to find that credit unions still win out: you get benefits of a credit union with the same level of protection from the NCUSIF as the FDIC.

  • “The National Credit Union Share Insurance Fund provides members of federally insured credit unions with up to $250,000 in insurance coverage.” — NCUA
  • “FDIC deposit insurance covers the depositors of a failed FDIC-insured depository institution dollar-for-dollar, principal plus any interest accrued or due to the depositor, through the date of default, up to at least $250,000.” — FDIC

Standard and Additional NCUSIF Protection

Share certificates as well as savings, checking, and money market accounts all receive the standard level of NCUSIF protection outlined above. Retirement accounts, joint accounts, and trusts (revocable and irrevocable) receive additional protections beyond the amount detailed above.

Learn More at PSCU

If you have questions about the security of your deposit, we’re here to help. Contact PSCU today to learn more about transitioning to a credit union, and a member of our team can assure you of all of the protections provided by NCUSIF.

Leave a Reply

Your email address will not be published. Required fields are marked *