Credit Unions?

Nighthawk

Are they safe?My wife has a very close friend who is the manager of a local credit union.She invited us to put our CD's there and open a checking account.Im satisfied with our Bank but our CD's are aout to mature and the credit union is offering a slightly better interest rate.It isnt much CD's are not drawing hardly any interest at all here.I ask her was the credit union FDIC Insured she said no were Insured by ______Credit Unions of America?I cant remember what she called it.Would someone explain how or whats the difference in a credit union and a Bank?And are they safe to keep your money in?

Rugster


"Toujours Pret"

n/a

They are as safe as any bank, however ya can get loans cheaper at other places, most credit unions charge 1% monthly on the unpaid ballance, so actually is 12% interest. And as long as they are FDIC insured can ya really go wrong, Not to say they couldnt go belly up though.


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He Dog

Credit Unions are not FDIC insured. If it is a Federal credit union it is insured via the feds in a credit union insurance program. I cannot remember the initials. If it is a fed credit union, it is as safe as any federal bank. Usually pay better interest, and usually charge less interest. You will probably have to buy a share for five bucks or so.

He Dog

Nighthawk

He Dog your right they arent FDIC Insured but I cant remember what she called it?They offer a little better interest checking than were getting now.Im just cautious about investing any 5 yr CD's there,because I say what if they do go belly up?At least at the bank I know my money is safe no matter how small the amount may be.[:(]Henry I like your idea,but I dont think that would go over with the MRS.if you know what I mean?She has visions of little ones running around with cap guns in their hands.LOL

Rugster


"Toujours Pret"

woodsrunner

I joined a credit union through my first full time job after graduating high school. I'm still a member after 22 years. Even though they are now not limited to employees and relatives of the old closed down glass plant, and have a couple thousand members instead of 400, I walk in and they know my name. I call on the phone and they know who I am. For loans they have the best rates around and thier dividends are comparable to bank interest rates. If you are the type of person that likes a more personalized service, like I am. A small credit union is the only way to go.

The big difference between a credit union member and a bank customer. A credit union member is one of the owners. My savings account is called a share account and the percentage my share account makes of all the share accounts is the percentage I own. Also if I'm unhappy with thier policies I can attend the monthly board meeting and present my grievences.

Woods

He Dog

Rugster, your money would be safe enough, but I personally would not up for a 5year CD. Likely you will get locked in at too low an interest rate. They will climb in the next 5 years. Go with 1 year max.

He Dog

HUNT WALKERS

I joined a credit union in K.C. about 15 years ago. They have always treated me right. Their rate on loans has always been as good or better than a bank, same goes with dividends. Unless they are extreemely busy, your loan is generally processed in a couple of hours. It don't have to go before the board for approval. And as woodsrunner said, basically the service is much more personalized. I do keep an account at a regular bank also, but prefer the credit union.

MVP

I belong to a very large Credit Union in Washington state that is insured up to $100,000 by NCUA *National Credit Union Administration* a U.S Government agency, which is the equivalent to FDIC. Great rates on their accounts and loans. As a credit Union member you are part owner (For what ever that means) by keeping your money with them.

jsergovic

I get 4.79% on my truck loan at a Credit Union...

ItGoBang

CU's are ok, but they dont have all the rules that banks do... Just remember dont keep all you eggs in the same basket.....[;)]

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tajjn

Rugster:

Having worked at both, Banks for 21 years and Credit Unions for 7 years I can honestly tell you that your money is just as safe with a Credit Union as with a Bank. With a Credit Union it might even be a little safer since you don't have to deal with stockholders if a Credit Union should fail. Federally chartered Credit Unions are insured by the NCUA "National Credit Union Association" which acts like the FDIC does for Banks. State chartered Credit Unions quite often are also insured by the NCUA, the one I work at now is, they also can be insured by private funds, or even carry private coverage over and above the NCUA coverage. The Credit Union that I work for insures funds up to $350,000; $100,000 NCUA coverage $250,000 private coverage. Good luck with your CD's I know the rates stink, but don't look forward to them going up until after the election.

Nighthawk

Thanks to everyone for the input the NCUA was what she said they were insured by,thanks for nameing it.I always feel better about decisions after a GB consultation.I know some of you have been there done that,I do value your input.He Dog to be honest you probably kept me from makeing a mistake by going with a 1 yr CD instead of another 5 yrs.Im going to give the credit union a shot,but keep our checking etc at our current bank.

Rugster


"Toujours Pret"

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pickenup

Does your bank charge you to have a checking account? Some do, some don't. My credit union does not. Been there a lot of years. Anytime I have had a problem, they have been good to work with.


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