Uninsured Capital on Deposit

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Uninsured Capital on Deposit

Unfortunately, we were unable to find the amount of credit union deposits that are uninsured. But our research found there is around $5 trillion in uninsured bank deposits in the US. More information can be found below.

DEPOSITS NOT INSURED BY THE FDIC

  • In 2018, there was almost $5 trillion in bank deposits that were not insured by the FDIC.
  • The FDIC only insures funds up to $250,000.
  • The deposit percentages insured by the FDIC are 51% for the average bank, 50.4% for Wells Fargo, 39.9% for Bank of America, and 34.7% for JP Morgan Chase.
  • Using the deposit percentages from above, we calculated that the percentages of uninsured deposits would be 49% for the average bank, 49.6% for Wells Fargo, 60.1% for Bank of America, and 65.3% for JP Morgan Chase.

USEFUL INFORMATION RELATED TO CREDIT UNIONS

  • The largest credit unions in the US are Navy Federal Credit Union, State Employees’, Pentagon, Boeing Employees, SchoolsFirst, The Golden, and First Technology.
  • According to the NCUA, federally insured credit unions grew to more than 116 million members, assets in the credit union system increased to $1.45 trillion.

RESEARCH STRATEGY

Your research team began by going to both the FDIC and NCUA websites. We hoped to find some publications within their web pages that listed the number of uninsured deposits. We found information detailing the number of funds that are insured by both the FDIC and NCUA, but nothing was found mentioning the amount up uninsured funds. Since we couldn’t find what we were looking for, we moved on to the next strategy.

Next, we looked for any financial magazines or publications that talked about the number of deposits not insured by the FDIC or the NCUA. Some websites we reviewed were Money, Forbes, and The Economist. We found information on security deposits, bank interest, and 401(k) but nothing talked about uninsured bank/credit union deposits. Since this strategy didn’t produce any usable information, we moved on.

Another strategy we attempted was to calculate the answer by going to the websites of the five largest credit unions in America ranked by their assets and seeing they listed the number of their uninsured deposits. Some websites we reviewed were SchoolsFirst and Boeing Employees. There was information detailing the rules for NCUA insurance and how it doesn’t insure funds over $250,000 but there wasn’t anymore useful information found. Since this strategy couldn’t find the amount of credit union deposits that are uninsured, we moved to our last strategy.

As a final resort, we tried to triangulate the answer by trying to find the total amount of deposits among those top credit unions that were identified earlier. Once we got that answer we attempted to find the percentage of credit union deposits that are uninsured. Unfortunately, we were unable to locate the percentage of credit union deposits that are uninsured.

Sources
Sources