National Credit Union Share Insurance Fund (NCUSIF)

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The National Credit Union Share Insurance Fund (NCUSIF) was created in 1970 and is administered by the National Credit Union Administration (NCUA). The NCUSIF is used to protect members against losses if a federally insured credit union fails. The protection is provided by insuring the deposits of the credit union members, making the applicable insurance payments, and providing assistance regarding the liquidation or threatened liquidation of an insured credit union. The NCUSIF is fully funded by participating federally insured credit unions. A locator of federally insured credit unions is available at the website of the NCUA.

The NCUSIF performs the following activities: 

  • Insures individual member accounts up to $250,000 per individual depositor. These accounts include regular shares, share drafts, money market accounts, and share certificates. If a member has more than $250,000 at any single credit union, the NCUSIF may provide additional insurance.
  • Insures member’s joint accounts and provides each joint account holder with $250,000 coverage for their aggregate interests at each federally insured credit union. This coverage includes the same accounts listed above.
  • Provides separate insurance for traditional and Roth IRAs up to $250,000 in the aggregate at each credit union.
  • Provides separate insurance for KEOGH up to $250,000 in the aggregate at each credit union.
  • Provides separate insurance for revocable and irrevocable trusts. For revocable trusts, the coverage may be of up to $250,000 per beneficiary named by the owner. For irrevocable trusts, each beneficiary in an account may have separate coverage of up to $250,000.
  • Does not cover losses on money invested in mutual funds, stocks, bonds, life insurance policies, and annuities offered by affiliated entities.

The NCUSIF is backed by the full faith and credit of the United States government. According to the NCUA, “…no member has ever lost a penny from accounts insured by the NCUSIF.”

[Last updated in July of 2021 by the Wex Definitions Team]