Are Your Bank Accounts Safe? Understanding FDIC and NCUA Insurance

When it comes to your money, peace of mind is priceless. You work hard for every dollar—so knowing that your savings are protected matters more than ever.

Fortunately, most banks and credit unions in the U.S. offer government-backed insurance to safeguard your deposits. But not all do, and not all types of accounts are covered.

Let’s break it down in simple terms.

What Is FDIC Insurance?

The Federal Deposit Insurance Corporation (FDIC) is a government agency that protects your money in case your bank fails. If your bank is FDIC-insured, your deposits are covered up to $250,000 per depositor, per insured bank, per ownership category.

What’s Covered:

• Checking accounts

• Savings accounts

• Money market deposit accounts

• Certificates of deposit (CDs)

  
  

What’s NOT Covered:

• Stocks, bonds, and mutual funds

• Life insurance policies and annuities

• Crypto or digital currency

• Contents of a safe deposit box

  
  

Example:

If you have a checking account and a savings account at the same FDIC-insured bank, your total is covered up to $250,000 under your name.If you have a joint account with someone else, you could be insured up to $500,000 total—$250,000 for each person.

🏦 How to Check If a Bank Is FDIC-Insured:

Look for the FDIC logo at your bank’s branch or website.Or use this tool: FDIC BankFind Suite »

What About Credit Unions?

If you bank with a credit union, you’re not left out. Most federally insured credit unions are protected by the National Credit Union Administration (NCUA), through the National Credit Union Share Insurance Fund (NCUSIF).

The coverage limits are very similar to the FDIC.

NCUA Covers:

• Share savings accounts (like regular savings)

• Share draft accounts (like checking accounts)

• Money market accounts

• Share certificates (like CDs)

  
  

Coverage Amount:

Up to $250,000 per depositor, per credit union, per ownership category

How to Check If a Credit Union Is NCUA-Insured:

Look for the NCUA logo or check this tool:NCUA Credit Union Locator »

What’s Not Covered by Either FDIC or NCUA?

• Investments (stocks, bonds, ETFs, mutual funds)

• Annuities or insurance policies

• Cryptocurrency and other digital assets

• Items stored in safe deposit boxes

Are All Financial Institutions Covered?

No, not all. Some newer financial apps and online platforms (like Chime, Cash App, or Venmo) may not be directly insured by the FDIC or NCUA. Instead, they often partner with an insured bank, so always verify where your money is actually held.

Need to Protect More Than $250,000?

If you have more than $250,000 to keep safe, consider:

• Splitting funds across different insured banks or credit unions

• Using different ownership categories (individual, joint, retirement)

• Looking into special services like CDARS or ICS, which allow large deposits to be split across multiple banks while staying fully insured

Final Thoughts

Whether you’re banking with a traditional bank or a local credit union, one thing is certain: knowing your money is insured gives you confidence.

Check your accounts, verify your bank’s or credit union’s insurance status, and don’t hesitate to ask questions.

You’ve worked too hard not to be sure.

I believe in sharing helpful information with others because we’re all on this journey together. If this post helped you, please consider sharing it with a friend or family member.

Let’s all be good stewards of what God has given us.