It’s Tuesday again and we’re here to smash one more credit union myth!
Myth #4 – Credit unions are too small.
Some people believe that because credit unions are smaller, locally based institutions (as compared to a national bank), that their money is less secure. This is simply not true, and let me tell you why.
Do you ever see the plaque on our desks or the fine print on one of our posters or online ads that says “Federally Insured by NCUA”? It looks like this:
This means that your money is insured to at least $250,000 by the National Credit Union Administration. While we are confident in the soundness of our Credit Union, if anything were to happen your money would be safe. Here’s some additional information from the NCUA to explain it in a little more details:
WHAT BASIC COVERAGE IS PROVIDED BY THE NATIONAL CREDIT UNION SHARE INSURANCE FUND (NCUSIF)?
The NCUSIF provides all members of federally insured credit unions with $250,000 in coverage for their single ownership accounts. These accounts include regular shares, share drafts (similar to checking), money market accounts, and share certificates. Individuals with account balances totaling $250,000 or less at the same insured credit union are fully insured. If a person has more than $250,000 at any single credit union, several options are available for additional share insurance coverage because, as discussed in greater detail, the NCUSIF provides separate insurance for other accounts. To read more, here’s a handy brochure to reference: https://www.ncua.gov/Legal/GuidesEtc/GuidesManuals/NCUAHowYourAcctInsured.pdf.
Also, one of the benefits of working with a local credit union is the type of people you’ll be working with. I don’t know about you, but I like to know that I’m speaking with people that have a common bond. By being locally based your credit union can better understand you and the challenges and benefits you have in the location you live in. Products and service offerings are often tailored to the community as well. You’re not getting a cookie cutter financial institution, you’re being helped by people who are just like you. People who have your best interest in mind.
Any questions on myth #4, or any of the other myths we’ve smashed? Feel free to shoot us a message or give us a call at (808) 930-1400!