NCUA vs FDIC insurance

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Addy
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Joined: Fri Feb 01, 2019 4:12 pm
Location: USA

NCUA vs FDIC insurance

Post by Addy »

Is there any need to be concerned by NCUA deposit insurance vs FDIC? If there is, does it make sense to keep money in a bank rather than a credit union?
stan1
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Joined: Mon Oct 08, 2007 4:35 pm

Re: NCUA vs FDIC insurance

Post by stan1 »

Addy wrote: Tue Nov 22, 2022 3:18 pm Is there any need to be concerned by NCUA deposit insurance vs FDIC? If there is, does it make sense to keep money in a bank rather than a credit union?
For all practical purposes FDIC and NCUA are the same thing. No reason to be concerned about deposit insurance. Choose a bank or credit union based off which one will give you the products (such has higher yielding accounts) and customer service that you desire.
MrJedi
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Joined: Wed May 06, 2020 11:42 am

Re: NCUA vs FDIC insurance

Post by MrJedi »

At a customer facing level they're the same thing.
Topic Author
Addy
Posts: 84
Joined: Fri Feb 01, 2019 4:12 pm
Location: USA

Re: NCUA vs FDIC insurance

Post by Addy »

Thanks for your replies!

A related question: would you consider US Treasury Bills held in a brokerage (or directly in Treasury Direct) safer than FDIC/NCUA insured accounts?
JackoC
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Re: NCUA vs FDIC insurance

Post by JackoC »

Addy wrote: Wed Nov 23, 2022 1:54 pm Thanks for your replies!

A related question: would you consider US Treasury Bills held in a brokerage (or directly in Treasury Direct) safer than FDIC/NCUA insured accounts?
Short answer not really. The longer answer depends on the risks to be considered (malfeasance by custodian, custodian hacked, you hacked, somebody impersonates you in person, 'technical political shenanigans' vs 'real' default on T-bills vs federal govt reneging on its commitment to FDIC/NCUA, etc) and opinions of each. I've switched back and forth over time between mainly FDIC/NCUA or mainly direct T-bill or federal money market fund based on changes in after tax return, lately bill/MM tends to have the advantage for me after tax; and convenience. I don't spot one or the other any specific number of basis points for being safer. I would always rather have at least some of both though to both diversify cybercrime risk and just simple situation where I get locked out of one account but not the other and I need the money right away.
alex_686
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Re: NCUA vs FDIC insurance

Post by alex_686 »

Addy wrote: Wed Nov 23, 2022 1:54 pm Thanks for your replies!

A related question: would you consider US Treasury Bills held in a brokerage (or directly in Treasury Direct) safer than FDIC/NCUA insured accounts?
I have worked for on all sides of the question. All 3 opinions are super safe. For one to be safer than the other requires 1 of 2 things.

One are crazy edge cases where the FDIC, NCUA, or the federal government defaults.

The second one involves highly nuanced questions on liquidity, interest rate risk, and principal risk of the specific instrument and your goals and risk tolerances.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.
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