What's the difference between FDIC and NCUA insurance, and how does the $250,000 limit work?

FDIC insurance protects deposits at banks; NCUA insurance protects deposits (called shares) at credit unions. Both are backed by the U.S. government and both cover up to $250,000 per depositor, per insured institution, per ownership category. "Ownership category" is the key phrase: a single account and a joint account at the same bank are insured separately, so a couple can cover well above $250,000 at one institution by using individual and joint titling. The coverage applies to the total of your deposits at that one bank or credit union, not per account. As long as your money sits in covered deposit products at an FDIC or NCUA member, that $250,000 of protection is identical in practice. Verify any institution is a member before opening an account.