Definition
Federal insurance protecting deposits at credit unions, run by the National Credit Union Administration. Coverage is $250,000 per member, per credit union, per ownership category, the direct equivalent of FDIC insurance at banks.
Why it matters
Money at a federally insured credit union is exactly as safe as money at an FDIC-insured bank, which widens where you can shop for rates. The per-institution limit starts to matter once savings grow large.
Example
A saver holds $260,000 at one credit union, $10,000 over the limit. Moving $60,000 to a second insured institution puts every dollar under a $250,000 umbrella at each, so no balance depends on a single institution.
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.