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One time I heard through the grapevine that someone didn’t want to open an account at a credit union because credit unions aren’t insured by the FDIC (Federal Deposit Insurance Corporation) and their money would be "unsafe."

While that person isn’t necessarily wrong— credit unions are not insured by the FDIC— I think their fear of credit unions is misplaced. Nearly all credit unions (including FCCU) are insured by the NCUA, or National Credit Union Administration.

Today we’re going to learn all about share/deposit insurance!

Share/deposit insurance is one of those things that, as an adult, you should learn about, but you put it off because it’s boring. But, I promise I’ll try to keep things interesting because I truly believe you should learn this information.

Both the NCUA and FDIC are independent agencies of the U.S. Government that regulate, charter, and supervise depository institutions. The FDIC insures banks and thrift institutions with deposit insurance; the NCUA insures credit unions with share insurance. If you don’t know the difference between credit unions and banks, check out this video!

Deposit insurance is a measure “to protect bank depositors, in full or in part, from losses caused by a bank’s inability to pay its debts when due” (Wikipedia, Yes I'm quoting Wikipedia. It was the most clear, well-written description ?). Share insurance is practically the same thing but for credit unions. Potato, potato (a phrase that only makes sense aloud).

Financial institutions use your deposited money to fund the loans they borrow out; this is standard industry practice. If the financial institution lost your money from borrowing it out (due to things like defaulted loans), you would be covered by share/deposit insurance.

Essentially, share/deposit insurance gives you peace of mind that when you deposit money at a financial institution, you can just as easily turn around and withdraw it (depending on the type of account, of course).

You may recognize these icons at the bottom of most financial institution advertisements and content.

The NCUA logo states that "your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government."

Now, if we get down into the nit-gritty details, different types of account categories have different amounts of coverage depending on the number of owners, beneficiaries, participants, etc. Here is a table (below) that summarizes the account categories that are insured and the applicable coverage amount for each.

While many share/deposit accounts are insured by both the NCUA and FDIC, there are a few that are not covered.

Here’s a table of qualifying accounts:

Here's a table of non-qualifying accounts:

On the surface, this information can be a bit overwhelming. Luckily, MyCreditUnion.gov has a nifty NCUA Share Insurance Estimator tool if you’d like to evaluate your personal financial situation.

Bottom line: Is your money safe at a credit union? Most of the time, yes! Just check for NCUA insurance!

For legal reasons I should mention that “safe” is a subjective word, and that you should evaluate your personal financial situation against the stipulations of NCUA share insurance. Only then you can decide if your money is “safe.”