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Is the Money in My Account Safe?

Keeping money safe is important to everyone.

Thanks to NCUA (or FDIC if you have an account with a bank) your financial institution is probably the safest place to store your hard earned cash. The best part? All you have to do is open an account.

Insuring Organizations

There are two organizations, both backed by the United States government, that insure your money at participating institutions. The NCUA (National Credit Union Administration) is for credit unions and the FDIC (Federal Deposit Insurance Corp) is for banks. These organizations both function as safety nets for your deposits.

While there are a few subtle differences between the two, they are extremely similar in the protection that they offer. Because of this protection, insured banks and credit unions and the covered accounts within them are one of the safest places that you can keep your money. In other words, it's completely safe to keep your money in a financial institution where it's insured and protected.

Is My Money Protected?
How do you know if your institution is insured? The vast majority of banks and credit unions in the US are. To confirm that your institution is covered, you can check their website or talk with a representative by giving them a call or stopping by a branch. (LA Financial Credit Union and Havasu Community Credit Union are federally insured by NCUA.)

How Much of My Money is Protected?

Both the NCUA and FDIC insure up to $250,000 per account ownership type/account type and institution. What does that mean? It gets a little complicated depending on the account types but, essentially, it means that you have at least $250,000 of protection on your deposits should the worst happen and your credit union or bank is forced to close.

How much coverage you have depends on what category your account falls into. If you have a savings account and a checking account, those are both in the single owner account category, so they would be insured for a total of $250,000. But if you had accounts of different types—say a checking account and an IRA—each account would be insured for $250,000, meaning you would have a total of $500,000 of protection.

A stylized sketch of a safe with cash inside

What kinds of accounts are protected?

When it comes to what kinds of accounts are insured, almost everything that isn’t an investment would be protected. That includes:

Accounts that generally aren’t protected would be things like:

  • Stocks
  • Bonds
  • Money Market Funds

 Hint: A Money Market Fund is an investment account - a mutual fund that invests solely in cash and cash equivalent securities. These are different than a Money Market Account, which is a type of savings account.

Joint Accounts and Trusts

The rules change a little when it comes to joint accounts and trusts. Joint accounts are protected for $250,000 per owner. So if you have a joint account with your spouse, it would be insured for a total of $500,000. Trusts are generally insured for $250,000 per beneficiary. Meaning if you have 3 beneficiaries listed in the trust, it would be protected for up to $750,00.

Protecting it all

If you have more than $250,000 that needs protecting, it’s going to require some strategizing. In order to get full protection for all of your funds, you’ll need to break them up into chunks that fit within the limits. That could mean spreading the money out between different account types or keeping some at one institution and some at another.

There are lots of specifics when it comes to NCUA or FDIC insurance. If you want to get more information about your situation and find out the best way to ensure that all of your money is protected with us, you can read through Your Insured Funds on our website,  check out NCUA's website, or you can speak with a member service representative at 1-800-894-1200.

Diversify your funds - Open a new Savings Account type

or, you can

Open a Checking Account
Learn more about Your Insured Funds

While we hope you find this content useful, it is only intended to serve as a starting point. Your next step is to speak with a qualified, licensed professional who can provide advice tailored to your individual circumstances. Nothing in this article, nor in any associated resources, should be construed as financial or legal advice. Furthermore, while we have made good faith efforts to ensure that the information presented was correct as of the date the content was prepared, we are unable to guarantee that it remains accurate today.

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