What do FDIC and NCUA insurance cover in the event of a loss?

The Federal Deposit Insurance Corporation (FDIC) insures deposits at banks and savings associations, covering accounts such as checking, savings, and certificates of deposit up to $250,000 per depositor, per insured bank. Similarly, the National Credit Union Administration (NCUA) provides insurance for deposits in federally insured credit unions, also protecting members' accounts up to the same limit of $250,000. Both agencies ensure that depositors are reimbursed for their insured deposits in the event of a bank or credit union failure, providing essential consumer confidence. However, neither insurance covers investments in stocks, bonds, or mutual funds.