What is the Difference Between FDIC and NCUA Insurance?

The main difference between FDIC and NCUA insurance lies in the institutions they cover. FDIC (Federal Deposit Insurance Corporation) insures bank deposits, while NCUA (National Credit Union Administration) insures credit union deposits. Both FDIC and NCUA provide government-backed insurance for financial institutions, and they both offer insurance coverage of up to $250,000 per insured bank or credit union, per depositor or share owner, per account ownership category. Their insurance coverage applies to various types of accounts, such as checking, savings, money market, and certificates of deposit. However, insurance coverage does not extend to investment products, stocks, bonds, mutual funds, annuities, life insurance policies, or safe deposit boxes.

In summary:

• FDIC insures bank deposits.
• NCUA insures credit union deposits.
• Both FDIC and NCUA provide insurance coverage of up to $250,000 per insured institution, per depositor or share owner, per account ownership category.
• Their insurance coverage applies to various types of accounts, but does not cover investment products, stocks, bonds, mutual funds, annuities, life insurance policies, or safe deposit boxes.

Comparative Table: FDIC vs NCUA Insurance

Here is a table comparing the differences between FDIC and NCUA insurance:

Both FDIC and NCUA insurance offer essentially the same type and amount of coverage, with minor differences in the types of accounts they cover. The main choice is between a credit union and a bank, with FDIC insuring banks and NCUA insuring credit unions. Neither insurance is better than the other; it's simply a matter of which suits your financial needs.