In light of recent news headlines spotlighting the fall of Silicon Valley Bank, local credit unions stand out as a reliable and secure option for consumers. Offering traditional financial products and services, credit unions are not-for-profit financial cooperatives primarily serving local consumers and small businesses in their communities:
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- California credit unions are among the most well-capitalized financial institutions, maintaining equity reserves and liquid investments that prioritize safety and soundness for their members. California credit unions have more than $29.9 billion in equity reserves. Combined with $51.4 billion of available liquidity, credit unions in California have the reserves to protect their members and weather shocks to the financial services market.
- All deposits at federally insured credit unions are protected by the National Credit Union Share Insurance Fund, a separate fund not associated with the Federal Deposit Insurance Corporation for banks. These credit union deposits are insured for up to $250,000 per individual depositor. Credit union members have never lost a penny of insured savings at a federally insured credit union, and the credit union industry’s deposit insurance fund has the backing of the full faith and credit of the U.S. government. See MyCreditUnion.gov for more information.
- Credit unions have a history of weathering economic crises and maintaining their commitment to serving their members’ financial needs. During times of economic uncertainty, credit unions remain a safe and sound option for consumers seeking financial services and products.