Banks carry FDIC insurance; credit unions carry NCUA. Both protect $250,000 per depositor, per institution, backed by the U.S. government. What's covered, what isn't, and how to insure more than $250k.
Every legitimate bank and credit union in Kansas City is federally insured — banks by the FDIC, credit unions by the NCUA. Both protect $250,000 per depositor, per institution, per ownership category, and both are backed by the full faith and credit of the U.S. government. A dollar at an NCUA credit union is exactly as protected as a dollar at an FDIC bank.
FDIC vs. NCUA at a glance
| Banks | Credit unions | |
|---|---|---|
| Insurer | FDIC (est. 1933) | NCUA (est. 1970) |
| Fund | Deposit Insurance Fund | Share Insurance Fund |
| Limit | $250,000 | $250,000 |
| Per | Depositor, per bank, per category | Member, per credit union, per category |
| Backed by | U.S. government | U.S. government |
| Has any insured depositor ever lost a cent? | No | No |
What's covered — and what isn't
Covered: checking, savings, money market accounts, and CDs (share certificates at credit unions) — the deposit products you'll find on KCBanks comparisons.
Not covered: investments (stocks, bonds, mutual funds, crypto), the contents of a safe deposit box, and insurance or annuity products — even when you bought them *at* a bank. Deposit insurance protects deposits, nothing else.
How "per ownership category" gets you past $250,000
The limit applies separately to each ownership category at each institution. A married couple at one KC bank can protect $1 million: $250k in each individual account, plus $500k in a joint account ($250k per co-owner). Retirement accounts (IRAs) are a separate category on top of that.
And the simplest strategy of all: spread deposits across institutions. $250k at a bank in Johnson County and $250k at a credit union in Jackson County are both fully insured — and with 146 institutions in the KC metro, you'll never run out of insured room.
How to verify an institution is insured
Every profile on KCBanks shows the FDIC certificate or NCUA charter number. You can cross-check any bank at the FDIC's BankFind tool and any credit union in the NCUA's directory. If an institution can't show you a certificate or charter number — walk away.
The bottom line
Don't choose between a KC bank and credit union based on safety — insured is insured. Choose based on rates and fees, which is where the real differences live: compare every KC institution's rates, or see who pays the most this month.