Why Are Credit Unions Safer Than Banks? Are they Insured? (2024)

Why are credit unions safer than banks? Like banks, which are federally insured by the FDIC, credit unions are insured by the NCUA, making them just as safe as banks.

The National Credit Union Administration is a US government agency that regulates and supervises credit unions. They also operate and manage the National Credit Union Share Insurance Fund (NCUSIF), which provides share insurance coverage for credit union members against losses should the credit union fail. The NCUSIF provides all members of federally insured credit unions with $250,000 in coverage for their single ownership accounts.