Both the NCUA and FDIC insure up to $250,000 per account ownership type/account type and institution. What does that mean? It gets a little complicated depending on the account types but, essentially, it means that you have at least $250,000 of protection on your deposits should the worst happen and your bank or credit union is forced to close.
How much coverage you have depends on what category your account falls into. If you have a savings account and a checking account, those are both in the single owner account category, so they would be insured for a total of $250,000. But if you had accounts of different types—say a checking account and an IRA—each account would be insured for $250,000, meaning you would have a total of $500,000 of protection.
The rules change a little when it comes to joint accounts and trusts. Joint accounts are protected for $250,000 per owner. So if you have a joint account with your spouse, it would be insured for a total of $500,000. Trusts are generally insured for $250,000 per beneficiary. Meaning if you have 3 beneficiaries listed in the trust, it would be protected for up to $750,00.
When it comes to what kinds of accounts are insured, almost everything that isn’t an investment would be protected. That includes checking, savings, trusts, CDs, and Money Market Accounts. Accounts that generally aren’t protected would be things like stocks, bonds, or money market funds.