Are credit unions as safe as banks right now?
Every financial crisis comes with its share of conspiracy theories and fake news, but there’s one rumor I’ve been hearing over and over again over the last few weeks. There’s this idea that credit unions aren’t as safe as banks, and unfortunately, this is something people love to repeat. And it’s been growing in the wake of the current crisis.
Let’s skip right to the point: credit unions are just as safe as banks — regardless of what your coworker or your cousin has to say about it.
However, there are definitely some differences to be aware of.
Credit Unions vs. Banks: How Your Money Is Insured
The first thing to know and understand about banks and credit unions is that both insure your funds on deposit up to certain limits. When it comes to accounts with a regular bank, your funds are insured up to limits by the Federal Deposit Insurance Corporation, which comes with government backing. With credit union accounts, on the other hand, funds are insured by the National Credit Union Share Insurance fund, which also has backing from the U.S. government.
continue reading »