Credit unions are member-owned financial cooperatives that often offer competitive rates on savings and loans. Unlike banks, most credit unions are insured through the National Credit Union Administration (NCUA) rather than the FDIC. Here is how to verify a credit union's status and what to check before opening an account.
The National Credit Union Administration (NCUA) is the federal agency that charters, regulates and insures federal credit unions. It also insures state-chartered credit unions that choose to opt into the federal insurance program. NCUA share insurance covers member deposits (called "shares") up to $250,000 per member per ownership category. This is similar in structure to FDIC coverage at banks, and the $250,000 limit applies in the same way across different ownership categories. Joint accounts, individual retirement accounts and certain trust accounts may qualify for different coverage amounts depending on how they are structured.
Federal credit unions are chartered directly by the NCUA and will typically have "Federal Credit Union" or the abbreviation "FCU" in their name. State-chartered credit unions receive their charter from the state in which they operate. Many state-chartered credit unions choose to carry NCUA share insurance, giving members federal deposit protection. However, some state-chartered credit unions instead use private share insurance rather than federal insurance. If you are considering a credit union that uses private insurance, research the private insurer separately to understand the coverage terms. Private insurance does not carry the same federal government backing as NCUA share insurance.
Go to mycreditunion.gov and use the Credit Union Locator tool. You can search by institution name, city or state. The results for each credit union show the charter number, the insurance status (federally insured by the NCUA or privately insured), the number of members, the credit union's address and basic financial information. Pay particular attention to the insurance status field. If a credit union does not appear in the locator, or appears as privately insured and you cannot find adequate information about the private insurer, contact the credit union directly and ask your state's credit union regulator for more information.
Most credit unions have membership eligibility requirements. These requirements are commonly based on your employer, geographic area, profession or membership in a particular community group or association. For example, a credit union may serve employees of a specific company, residents of a particular county, or members of a specific trade or professional association. Some credit unions have expanded their eligibility over time. Certain credit unions allow virtually anyone to join by making a small donation to a partner charitable organisation. Always check the membership eligibility requirements before beginning an application, as applying for a credit union for which you are not eligible will result in a rejected application.
If you have a dispute or complaint about a credit union, where you go depends on the credit union's size and type. For most federally insured credit unions, complaints can be submitted to the NCUA Consumer Assistance Center at ncua.gov/consumers/consumer-assistance-center. For credit unions with more than $10 billion in assets, the CFPB also handles consumer complaints. You can also contact your state credit union regulator for state-chartered credit unions. If you suspect unlawful conduct rather than a service dispute, your state attorney general's office is also a relevant contact.
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This page is general educational information only. It is not financial, legal, tax, credit or debt advice. Rules and regulations can change. Always verify current information with official sources before taking any action.