Share Insurance
What Is Share Insurance?
Share insurance protects deposits held at credit unions. It functions similarly to deposit insurance for banks and ensures that members’ savings are protected if a credit union fails.
In the United States, share insurance is typically provided through the National Credit Union Administration (NCUA).
Why It Matters
Share insurance protects credit union members from losing their savings due to institutional failure. This protection strengthens trust in credit unions and ensures financial stability within the cooperative banking system.
Members can safely deposit money knowing their funds are insured.
How Share Insurance Works
Credit unions that are federally insured contribute to the National Credit Union Share Insurance Fund (NCUSIF).
Insurance coverage typically protects deposits up to:
$250,000 per member per credit union.
Covered accounts include:
- share savings accounts
- share draft accounts
- share certificates
- money market accounts
If the credit union fails, insured deposits are reimbursed.
Share Insurance vs Deposit Insurance
- Share insurance protects deposits at credit unions.
- Deposit insurance generally refers to bank protection programs like FDIC insurance.
FAQs About Share Insurance
Is share insurance backed by the government?
Yes, when provided through the NCUA.
Does share insurance cover all accounts?
It covers deposit accounts but not investment products.
What is the insurance limit?
Typically $250,000 per member.
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