Summary
- NCUA insurance covers up to $250,000 per depositor, per ownership category at each credit union
- Joint accounts, trusts, and retirement accounts each receive separate $250,000 coverage
- No member has ever lost insured funds at a federally insured credit union since the NCUA was created
- Trust account coverage rules change December 1, 2026
Maybe you saw it as a sticker on a window, maybe as a sign at the teller station: “Your savings federally insured to at least $250,000 and backed by the full faith and credit of the United States Government NCUA.” But what does that mean exactly?
How Federal Deposit Insurance Works
First, let’s clarify an important detail: if your financial institution of choice is a bank, then those four letters will read “FDIC.” That stands for the Federal Deposit Insurance Corporation, which provides the same federal insurance for bank customers that the National Credit Union Administration (NCUA) does for credit union members. Both agencies exist to protect your money, so that if, for some reason, your financial institution were to disappear into thin air tomorrow, your deposits wouldn’t vaporize along with it.
How Much is Federally Insured
But here’s where some people get things confused. That $250,000 limit is not per account, but per depositor and ownership category. Let’s say you have a checking account, a savings account, and a certificate of deposit under your name at an NCUA-insured credit union like First Service; if the balances of those three accounts are added up, and the sum total is less than $250,000, you are 100% insured.
However, different ownership categories receive separate coverage. If, for example, you have a joint account with a spouse or family member, that account is still insured up to $250,000 per co-owner, effectively increasing the total coverage to $500,000. If you have three owners, the total coverage increases to $750,000. It stacks. A trust account owned by a married couple and their three children could be insured up to $1,500,000. For more information, see the NCUA FAQ page.
If you are a credit union member with more than $250,000 in deposits, schedule an appointment with one of our financial advisors today, and we can help you maximize that coverage.
PRO-TIP
Starting December 1, 2026, the NCUA is implementing new simplified trust account rules. Coverage is capped at $1,250,000 per owner (or $2,500,000 for two owners), regardless of beneficiary count.
Why Federal Insurance is Important
But why is this important? Wasn’t the Great Depression almost 100 years ago?
Financial institutions are relatively stable compared to other businesses. First Service, for example, has enjoyed excellent financial health since 1977, but one of the main reasons for that stability is the trust we have built with our community by doing everything in our power to protect you even from the most unlikely catastrophes. Since it was created in 1970, the NCUA has done much the same thing for the country as a whole and our credit unions.
The History of the NCUA
In 1995, Cap Corp, a huge credit union for other credit unions, failed due to risky investment strategies. When interest rates went up, their investments plummeted, resulting in losses of about $70 million. The NCUA immediately placed Cap Corp into conservatorship. While member credit unions absorbed losses up to $70 million, the Share Insurance Fund covered any additional losses. Individual members never lost access to their insured deposits. More importantly, they made sure that the hundreds of smaller credit unions that depended on Cap Corp for services could continue operating without disruption.
In 2008, during the financial crisis, five major corporate credit unions failed, and the NCUA stepped in. Through the Corporate System Resolution Program, they ensured that no insured member lost money. Over the following years, the agency recovered and returned more than $2.6 billion to the credit unions that were shareholders in the failed corporate credit unions.
In 2018, two major credit unions that had long specialized in taxi medallion lending, Melrose and LOMTO, had to close due to losses from the collapse of the medallion market caused by ride-share services like Uber and Lyft. The NCUA arranged for Teachers Federal Credit Union to immediately assume all members and their insured deposits from both institutions. Members experienced no interruption in access to their money.
How the NCUA Helps
When credit unions face challenges, the NCUA's approach isn’t just to refund the members. As you can see, they actively work to preserve member relationships, maintain local access, and keep communities together. If you are saving for a home, building an emergency fund, or making monthly deposits into your child’s college savings, this is the level of accountability and care that you are looking for.
Boom or bust, at First Service Credit Union, your money is protected. Your savings are protected. Your future is protected, all backed by the National Credit Union Administration.