Federal share insurance is crucial because it guarantees that money in your account is protected regardless of what happens. The NCUA routinely reviews how federal credit unions work, so they don't often shut down.  However, in case a credit union fails, you won't lose a penny of your money. If your credit union closes, the NCUA will transfer your money to another credit union that's federally insured. In the event that it can't transfer money to another credit union, you'll get a check of the money that was in your account through the mail a few days after the credit union's closure. Either way, your money won't be gone if something bad happens.