You’ve most likely seen the NCUA logo around credit unions, but do you know what it means? The NCUA, or National Credit Union Association, insures deposits at federal credit unions, like RMLEFCU. It’s helpful to know which accounts qualify for NCUA insurance protection.
Accounts Insured by NCUA
When you put your money into a financial institution, you’re trusting that institution to keep it safe. This is why credit unions are insured by the NCUA. Here are the different accounts and how much they are insured for:
Single ownership accounts, which are all credit union accounts with a single owner. The NCUA insures up to $250,000 for all single-ownership accounts owned by the same person at one institution.
Joint accounts are accounts owned by two or more people with equal rights to withdraw money and no named beneficiaries. The coverage limit for this is also $250,000 per account owner.
Retirement accounts, which include Traditional and Roth IRA accounts, are covered up to $250,000.
Irrevocable and revocable trusts, which are accounts owned by one or more people that name one or more beneficiaries to receive the funds upon death of the owner, are insured up to $250,000 per each named beneficiary.
However, mutual funds, stocks, bonds, life insurance policies, and annuities offered by affiliated entities, are never insured by the NCUA.
NCUA vs. FDIC
The NCUA is the equivalent to the FDIC (Federal Deposit Insurance Corporation). The Federal Deposit Insurance Corporation is an official federal entity that insures deposits of U.S. banks in the event of bank failures.
The FDIC and the NCUA vary significantly in that the former only deals with financial unions and the latter uses the National Credit Union Share Insurance Fund, while the FDIC uses the Deposit Insurance Fund.
At RMLEFCU, you can trust that your funds are insured by the NCUA. If you have any questions, please contact us at 303-458-6660 or chat with us online. Don’t forget to follow us on social media for the latest updates!