Most people would avoid walking around with large amounts of money in their pockets. The risk of losing it or getting robbed is just too much. Instead, people look to find safety for their money in a checking or savings account, yet there is still much confusion about a credit union’s ability to keep your money safe just like a bank does. It’s time to find clarity and understand what a credit union can do for your money’s security.
Are Credit Unions Safe?
Federally insured credit unions can protect you from financial failures with the use of the National Credit Union Insurance Fund (NCUSIF) just as banks can protect you with FDIC protection. A NCUSIF insured credit union is backed by the government to provide you the security your money needs when substantial problems arise.
Like the FDIC, the NCUSIF provides up to $250,000 of coverage for every depositor in every institution. If you have less than that amount of money in your account then you can rest assured that you will be given this government protection. People whose funds exceed $250,000 may still be protected depending on how their accounts are organized.
What Can I Insure?
Once you’ve made sure your credit union is federally insured (contains the word “federal” in its name or is documented under the National Credit Union Administration) you can find out what can generally be covered by your credit union. Investments made through a credit union such as mutual funds or annuities are not covered by NCUSIF insurance. The National Credit Union Administration generally insures:
- Checking accounts
- Savings accounts
- Money market accounts
- Certificates of deposits
- IRAs being held by the credit union
Financial stability is a must for anyone, and we want to help you reach it. The financial professionals of Valley Federal Credit Union are determined to offer you the most comprehensive services. For more information about what we have to offer, contact our location in Brownsville today.