Credit Unions as Safe as Banks
August 7, 2008 · Print This Article
When it comes to hard-earned money, Americans are very careful to consider the kind of institutions to deal with when handling their funds, and this has probably never been more true than today, what with the fragile nature of the economy. People don’t have a lot to spend these days, and they’re looking at their banks as a place to help them save what they have and invest into the future. Of course, with so many banks available, people are in need some of guidance to find out exactly what kind of institutions exist and how they can help them.
Although some unacquainted people are originally hesitant to accept them, credit unions are regarded by experts to be just as secure as the banks people have come to know and trust. Rather than having the FDIC guarantee your funds, credit unions utilize the NCUA to back up accounts up to the exact amount that you deposit into them, making it a fail-safe investment.
The NCUA is the financial equivalent to the FDIC, and it stands for the National Credit Union Association. According to their reports, there have been only six credit union failures this year total, but provided you have $100k or less in an individual account or $250k or less stored away for retirement, you’re completely insured. As a bonus, credit unions often provide better interest rates on things such as savings accounts, money markets, and many more financial accounts.
Also, credit unions provide all the same amenities and services that a bank does, and sometimes in such a way as to provide you benefits that you never realized you could appreciate. For instance, certain credit unions offer the ability to lock your account at a certain value, so that you can never overdraw from your savings or checking account. Also, some don’t charge you extra fees for special services. The differences are rather large if you dig to find them, so make certain to examine each available institution and find one that is right for you.
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[...] Credit Unions as Safe as Banks [...]
I used Service First Federal Credit Union and the online banking is pretty sweet. Plus, it's a credit union. I like credit unions
Ohio’s credit unions believe we have a social responsibility to help our members … Fourteen credit unions in Ohio have. made a combined commitment of …
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It depends on the type of loans the credit union is making and how they fund the loans. The current credit crunch (so far) is affecting mostly mortgages & companies that make mortgages. So if the credit union doesn't offer mortgages, there won't be a lot of effect for now.
If the credit union does offer mortgages, it depends on the types of mortgages they make and what they do with the mortgages after they make them. If they keep the mortgages in their portfolio and don't sell the mortgages to a bank or other investor, there will also be little to no effect on the credit union.
However, if they tend to sell the loans to banks or other investors, then it depends on the types of mortgages they make. If the mortgages are mostly 'conforming' mortgages (generally: documented, good FICO score and less than $417k), then there is probably a minimal effect, as these loans can easily be sold to Fannie Mae or Freddie Mac.
If the mortgages tend to be anything other than conforming loans, then the credit union is probably caught in the same credit crunch that many other mortgage makers are caught in. Unless they have the capitalization to keep the loans on their books indefinitely, they will likely not be able to make very many of these types of mortgage loans. If they are able to make them, the interest rates on these loans will likely be significantly higher.
If the credit union realized a lot of profits on non-conforming loans, then it may affect their ability to make other types of loans, as they won't have as much money to lend back out. Otherwise, the main effect will be that they won't be able to offer non-conforming mortgage loans, except at significantly higher rates.
Insured depository institutions refers to financial institutions (banks, credit unions, etc.) that accept deposits and have federal insurance (FDIC, NCUA, etc.). I think it means you need to have someone from your financial institution confirm your identity. The best thing to do is call your financial institution and ask them about it. Most likely, they will have seen this type of request before and will know what to do.
Corporate Credit Unions are basically credit unions for credit unions. Corporates do not have natural person (i.e. regular people like you and me) as members. Instead, the members of corporate credit unions are credit unions. I don't know if they can help verify your identity.
Here is a link to a website that has more information about corporate credit unions:
Good luck!
Credit unions with less than $10 Mil in assets have access to FREE Financial Educ. resources -
wnat to see a really evil banker, check out bankbetterway.
Local News: Local banks, credit unions still dealing with slowdown
Credit Unions aren't open only online. You have to join a 'brick and mortar' credit union. However, once you've joined, most of them have an online presence.
The only time I would use a bank is to get a lower rate on a loan if and when offered, but other then the once in a while loan offers a Credit Union can beat out a bank on anything. My Credit Cards have 9% interest. Tell me what Bank offer Visa or Master Card at 9% and my credit score is not the best. All I can say is shop around and compare for yourself. If your local Credit Union can not beat out your local bank on rates of most general services you must live in the sticks(MAYBE ALASKA).
RT Accepting school supply donations for us: CFE credit unions, Orlando's +more (#PUSH)
Arizona Federal a Maricopa County: (602) 683-1000 a Tucson: (520) 325-5662 … member of one of the inest credit. unions in Arizona, and it is because of inancial …
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the long of the short is this, there is always some lag in "reaction" time once the fed drops, but one of the main issues is that banks are not loaning monies to each other; thus creating even more pressure on the dollar. Why, well banks are holding off on lending funds to each other because they have 100% confidence in what banks will be there after this sell off to pay back the $$ that they are loaning out.
the market will start going up shortly, so invest now, look at good p/e ratios, and hold on b/c it's going to be fun ride up!
credit union attribute awareness and association to two previous years, 2000 and 2002. … Association of attributes with credit union or bank: Summary of Bank …
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from LeagueofSECUs: AL & FL credit unions can now register 4 our workshop on helping small gulf coast businesses
How much can you get away with using their online banking?
Credit unions, like all unions, can do a lot of things for people. Deferring payments is one of them. They will go further than most lending institutions to help you succeed.
Just ask them, you'll be pleasantly surprised.
After Chapter 7 bankruptcy, you will not longer owe. money on: a Credit cards; a Retail … stores; a Unsecured loans from banks, credit unions, finance …
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I think you're talking about credit bureaus, not credit unions, yes?
Actually., that’s not 100% correct. Banks are insured by FDIC and most Credit Unions insured by NCUA. Both FDIC and NCUA are Federal Insurance Agency of the US Government. Both insurance coverages mirror each other with basiclly no difference. However, some credit union may select to be “State Charter” for various business reasons and are insured seperately by private insurance carriers such as ASI, etc.
lol u want a comment? ok here… LMAO
but…what if you are in toronto?
Aaaahhh- but we don't CHARGE credit unions to be listed or have a link to their website-
It’s about time the national press quit selling out to the big banks and gave credit unions some kudos!
Absolutely.. I have been a member for years and I am also an employee of a credit union. They are for the member instead of being for the banker who is worried more about his large bonus every year. We also love to give loans and we like to help our members.
Hey credit unions, members are really in charge. They are taking you on the ride.