Credit Unions as Safe as Banks

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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