Members 1st Credit Union - NCUA Insured (2024)

FAQs

Is my credit union NCUA insured? ›

How Do I know If My Credit Union is Federally Insured? All federally insured credit unions must prominently display the official NCUA insurance sign at each teller station, where insured account deposits are normally received in their principal place of business and in all branches.

By structuring your deposits using different ownership assignments such as single ownership, joint ownership, and revocable family trusts, you can maximize your NCUA insurance coverage.

The standard share insurance amount is $250,000 per share owner, per insured credit union, for each account ownership category. The $250,000 standard share insurance account became permanent through the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. MyCreditUnion.gov/estimator.

Just like banks, credit unions are federally insured; however, credit unions are not insured by the Federal Deposit Insurance Corporation (FDIC). Instead, the National Credit Union Administration (NCUA) is the federal insurer of credit unions, making them just as safe as traditional banks.

Credit unions are insured by the National Credit Union Administration (NCUA). Just like the FDIC insures up to $250,000 for individuals' accounts of a bank, the NCUA insures up to $250,000 for individuals' accounts of a credit union. Beyond that amount, the bank or credit union takes an uninsured risk.

All deposits at federally insured credit unions are protected by the National Credit Union Share Insurance Fund, with deposits insured up to at least $250,000 per individual depositor. Credit union members have never lost a penny of insured savings at a federally insured credit union.

Individual Accounts

You are insured for up to $250,000 for combined balances in your Members 1st Savings, Checking, Share Certificates, and Money Market Accounts. Beneficiaries may increase coverage limits.

Is the FDIC or NCUA Insurance Better? Both FDIC and NCUA insurance offer essentially the same type and amount of coverage, so the real choice is between a credit union and a bank. Neither is better; it's simply a matter of which suits your financial needs.

If the member shares are not assumed by another credit union, all verified member shares are typically paid within five days of a credit union's closure. No member of a federally insured credit union has ever lost a penny in insured accounts.

Has the NCUA ever paid out? ›

As liquidating agent of the former corporate credit unions' asset management estates, the NCUA has previously made five rounds of distributions. In 2020, 2021, and 2022, distributions were made to capital holders of Southwest, Members United, Constitution, and U.S. Central.

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 an NCUA institution is $250,000 per institution.

Credit unions don't fail without warning. The NCUA first places them in conservatorship and attempts to help them resolve their operational issues. If they can't, the NCUA helps them merge with another credit union or liquidates their assets.

Banks and credit unions are both safe places to keep your money when federally insured. However, it's important to note that the two types of financial institutions receive insurance through different agencies. While the FDIC secures bank deposits, the NCUA safeguards deposits at credit unions.

Which is Safer, a Bank or a Credit Union? As long as you are banking at a federally insured institution, whether it is a credit union insured by the NCUA or a bank by the FDIC, your money is equally safe. Credit unions are owned by the members—your savings account at a credit union is a share of ownership.

You can tell if your credit union is federally insured by NCUA by searching for a credit union in Find a Credit Union (Opens new window). In addition, credit unions must display in their offices the official NCUA insurance sign.

However, because credit unions serve mostly individuals and small businesses (rather than large investors) and are known to take fewer risks, credit unions are generally viewed as safer than banks in the event of a collapse. Regardless, both types of financial institutions are equally protected.

Are credit unions FDIC-insured? No, credit unions are not FDIC-insured, but credit union accounts are protected.