NCUA? FDIC? What’s the difference?

It’s trivia night, and the first question is, “What’s the NCUA?” A contestant shouts that it’s the group that organizes college basketball tournaments. Wrong!

You can seize an early lead by knowing that the NCUA has nothing to do with hoops. It’s an independent agency of the federal government, established so consumers will know that their financial deposits are safe at federally insured credit unions, including STCU.

What does NCUA mean, anyway?

The initials stand for National Credit Union Administration. Hardly anyone uses that full name, though. Instead, you’ll see the words “Federally insured by NCUA” in our advertising, on our windows, and pretty much anything we put out into the world. You’ve heard it on the radio or TV. It’s even at the bottom of this page.

Those words provide the security of knowing your savings, checking, certificate, IRA and trust accounts are federally insured up to $250,000.

 No member of a federally insured credit union (such as STCU) has ever lost a penny of insured deposits.

What does FDIC mean?

What the NCUA does for credit unions, the Federal Deposit Insurance Corporation (FDIC) does for banks. The coverage limits are the same, and the coverage is automatic with either.

The two-agency system makes sense because the two types of financial institutions are so different.  Credit unions are not-for-profit cooperatives, owned by their members. We prioritize stability and security when it comes to finances.  Banks are owned by stockholders and driven by profit.

What does it mean for you?

Your deposits are more than just money. They’re the security of knowing you can cover living expenses and emergencies. They’re the dream of achieving long-term goals, whether it’s a major purchase, the down payment of a home, or even retirement. 

With so much at stake, it’s important to know that those deposits are safe in a federally insured deposit account.