Is My Money Really Safe at a Credit Union?

Posted by Credit Union of Texas on July 29th, 2017

As a result of the turmoil of the great recession, many individuals vowed to become savvier about their personal finances. Hoping to make their money work harder for them while safeguarding it from unnecessary risk, individuals desire, security and reasonable assurances the accounts into which they place their earnings are sound. Given the distinct differences between traditional banks and credit unions, some may wonder if their money is really safe when deposited into a credit union account.

While credit unions and banks are distinctly different in their guiding focus, both do offer highly reasonable assurances of protection. Many people may not realize that both also offer insurance on deposits. Banking institutions rely on the Federal Deposit Insurance Corporation to insure deposits up to 0,000. Credit union members have access to the same type of insurance from the National Credit Union Administration. That means money deposited is protected whether it goes into a credit union or a bank.

Going beyond deposit protection, credit union members also typically gain a number of advantages to help their money work harder for them. Membership can carry advantages such as:

• Higher earning on deposits -  Credit unions are nonprofit entities that exist to serve their members. That means their profits go back to members in the form of higher interest earnings on savings and other financial investments. Credit unions are able to leverage profits to directly benefit members because the core of the business is different by design.
• Lower rates on borrowed money – Credit unions also leverage their earnings to help members save more on mortgages, car loans and credit card accounts. Their unique focus enables them to charge lower interest rates to member borrowers, which can add up to significant long-term savings.

Credit unions are member driven and member focused. While they tend to be smaller ventures than their for-profit counterparts, they offer built-in protections to safeguard their members’ financial security.

About Author

Serving our community since 1931, CUTX is owned by its members and operated in accordance with the laws governing credit unions in the State of Texas. As a member, your deposits are federally insured by the National Credit Union Administration, a United States government agency.