If you’ve scoffed at credit unions in the past and claimed they aren’t a safe place to house your money, it might be time to think again. You might not realize it, but your money and your business is going to be very safe in a credit union.
To begin with, The National Credit Union Administration is a federal agency that is watching your credit union and they are going to ensure that the credit union is operating at high quality standards. This government agency is focused on ensuring that more than 90 million credit union account holders are being protected when they do business with a credit union and they will be provided with $250,000 of coverage in the individually held accounts. This includes everything from money market accounts to checking accounts and more, just so long as the credit union bears the NCUSIF coverage logo.
For this benefit to become active at the credit union, you just have to enroll as a member. Once it is in place, you will be protected on savings accounts and more within the credit, giving you peace of mind. Of course, stocks and bonds, annuities and other investments with a known associated risk are not covered in this protection plan. Of course, big financial institutions that are FDIC insured also do not provide protection in these areas.
In addition to having your funds protected, you will find that they are also better protected. Since the credit union is not for profit, they are more conservative with investments and they focus their funds on helping their members. They will offer loans and provide you with services that are going to be of value to you, without engaging in what is known as predatory lending. That will mean you will be respected and protected at all times when you are doing business with them.
Credit unions are more prone to helping people better understand basic financial skills and helping them to gain the education they need. With their tips and information they can better help you to protect your money and to ensure that you have all the knowledge you need to safely manage your finances.
As you can see, one of the best choices you will have is going to be to use a credit union for your finances. With a smart, sensible approach to protecting your money, these institutions can give you an advantage when you are looking to take a smarter approach with your money.