Banking Practice Exam 2026 - Free Banking Practice Questions and Study Guide

The National Credit Union Administration (NCUA) is the organization responsible for insuring deposits at credit unions. It provides deposit insurance coverage to ensure that members’ savings are protected in the event that a credit union fails. This insurance is similar to what the Federal Deposit Insurance Corporation (FDIC) offers for banks but is specifically designed for the unique structure of credit unions.

The NCUA operates the National Credit Union Share Insurance Fund (NCUSIF), which covers individual accounts up to a certain limit, currently $250,000. This coverage helps to maintain member confidence in credit unions, encouraging savings and financial stability within the system.

Understanding the role of the NCUA is crucial for anyone involved in banking or financial services, as it illustrates the safety measures in place for depositors in credit unions. This coverage and the regulatory oversight by the NCUA differentiate deposit insurance at credit unions from other financial institutions.