I’m shocked by how often I get asked if money is safe at a credit union, the same way it is at a bank. People want to know if their money is insured like it is at a bank.
I don’t know if this is because of the perception that credit unions aren’t as old as banks (credit unions date back to 1852!), or if it’s because they seem (and often are) so much smaller than banks. Either way, I assure you that YES! Your money is safe at a credit union!
"When you keep your money in a credit union, it is also insured up to $250,000."
When you keep money in a bank, it is insured by the FDIC up to $250,000 per depositor, per insured bank, per each account ownership category. Know what’s cool? When you keep your money in a credit union, it is also insured up to $250,000 per share owner, per insured credit union, per each account ownership category. Despite the slight difference in language (each taken from the FDIC and the NCUA, respectively)—the coverage is exactly the same.
What does this mean? Should your bank or credit union fail (which happens more frequently with banks than credit unions), or were it to get robbed, get flattened by an act of mother nature, or to experience fraud or mismanagement, you will be “kept whole” by protection of these insurance funds.
This means you will get all of your money back, safe and sound. It also means that each kind of account you have (single account, joint account, trust account, IRA, etc…) at each insured bank or credit union is protected up to $250,000.
So feel free, and feel comfortable, to do your banking at a credit union. Or, as I like to call it, to do your credit union-ing at a credit union—credit union humor. (Sorry.)
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