Is PSECU FDIC Insured?

When it comes to choosing a financial institution, one of the most important factors to consider is the safety of your deposits. The Federal Deposit Insurance Corporation (FDIC) provides deposit insurance to protect consumers against the loss of their deposits if a bank or credit union fails. However, not all financial institutions are FDIC insured. In this article, we will explore whether PSECU, a popular credit union, is FDIC insured and what that means for its members.

What is PSECU?

PSECU, which stands for Pennsylvania State Employees Credit Union, is a not-for-profit financial institution that serves the employees of the Commonwealth of Pennsylvania, including state and local government employees, school employees, and their families. With over 450,000 members and more than $7 billion in assets, PSECU is one of the largest credit unions in Pennsylvania.

Is PSECU FDIC Insured?

No, PSECU is not FDIC insured. The FDIC only insures deposits at banks, not credit unions. Instead, credit unions like PSECU are insured by the National Credit Union Administration (NCUA), which is an independent federal agency that operates similarly to the FDIC but specifically for credit unions.

What is the NCUA?

The National Credit Union Administration (NCUA) is an independent federal agency that regulates and supervises federal credit unions in the United States. It was created by Congress in 1970 to provide deposit insurance to credit union members and promote the stability and soundness of the credit union system.

How Does NCUA Insurance Work?

NCUA insurance works similarly to FDIC insurance. It provides up to $250,000 of coverage per depositor, per credit union, for each account ownership category. This means that if you have multiple accounts with different ownership categories, such as individual accounts, joint accounts, and retirement accounts, each account is separately insured up to $250,000.

For example, if you have a checking account with $200,000 and a joint savings account with your spouse with $300,000, both accounts would be fully insured because they fall under different ownership categories.

What Does NCUA Insurance Cover?

NCUA insurance covers the following types of deposits:

• Savings accounts
• Checking accounts
• Certificates of deposit (CDs)
• Money market accounts
• Individual retirement accounts (IRAs)

It’s important to note that NCUA insurance only covers deposits, not investments such as stocks, bonds, or mutual funds. If you have investments through your credit union, they are not insured by the NCUA.

FAQs

1. Is my money safe at PSECU?

Yes, your money is safe at PSECU. While PSECU is not FDIC insured, it is insured by the NCUA, which provides the same level of protection for credit union deposits.

2. How much does NCUA insurance cover?

NCUA insurance provides up to $250,000 of coverage per depositor, per credit union, for each account ownership category. This means that if you have multiple accounts with different ownership categories, each account is separately insured up to $250,000.

3. Are credit unions as safe as banks?

Yes, credit unions are generally as safe as banks. Both banks and credit unions are regulated and supervised by federal agencies to ensure the safety and soundness of the financial institutions. The main difference is that banks are insured by the FDIC, while credit unions are insured by the NCUA.

4. Can I trust the NCUA?

Yes, you can trust the NCUA. The NCUA is a federal agency that has been protecting credit union members since 1970. It has a strong track record of ensuring the safety and stability of the credit union system.

5. What happens if my credit union fails?

If your credit union fails, the NCUA steps in to administer the liquidation process. Your deposits, up to the insured limit, are protected and will be returned to you. In most cases, another credit union will assume the deposits and continue serving the members.

6. Should I be concerned about the safety of my deposits at PSECU?

No, you should not be concerned about the safety of your deposits at PSECU. As an NCUA-insured credit union, PSECU provides the same level of deposit insurance as FDIC-insured banks.

Summary

In conclusion, PSECU is not FDIC insured but is instead insured by the NCUA. NCUA insurance provides the same level of protection for credit union deposits as FDIC insurance does for bank deposits. Your deposits at PSECU are safe and insured up to $250,000 per depositor, per credit union, for each account ownership category. It’s important to understand the insurance coverage provided by your financial institution to ensure the safety of your deposits.