Which entity insures deposits in U.S. credit unions up to $250,000 per depositor?

Which entity insures deposits in U.S. credit unions up to $250,000 per depositor?

• A. Federal Deposit Insurance Corporation
• B. National Credit Union Administration
• C. Federal Reserve
• D. Securities Investor Protection Corporation

Answer: (B)

Deposits in U.S. credit unions are insured by the National Credit Union Administration, which operates the National Credit Union Share Insurance Fund. This program protects up to $250,000 per depositor per insured credit union, covering shares and deposits such as checking, savings, money market accounts, and certificates of deposit held at that credit union. The coverage is per depositor per insured credit union, so you get the limit at each insured credit union where you have accounts. The other entities have different roles. The Federal Deposit Insurance Corporation insures deposits in banks and savings institutions, not credit unions. The Federal Reserve is the central bank and does not insure deposits. The Securities Investor Protection Corporation protects certain securities accounts if a brokerage firm fails, not bank or credit union deposits.

Deposits in U.S. credit unions are insured by the National Credit Union Administration, which operates the National Credit Union Share Insurance Fund. This program protects up to $250,000 per depositor per insured credit union, covering shares and deposits such as checking, savings, money market accounts, and certificates of deposit held at that credit union. The coverage is per depositor per insured credit union, so you get the limit at each insured credit union where you have accounts.

The other entities have different roles. The Federal Deposit Insurance Corporation insures deposits in banks and savings institutions, not credit unions. The Federal Reserve is the central bank and does not insure deposits. The Securities Investor Protection Corporation protects certain securities accounts if a brokerage firm fails, not bank or credit union deposits.