I recently took half of my savings account (a tidy sum) and moved it from my bank to a local credit union that has a long history if stability and is well regarded in my area. Credit unions are forbidden by law to invest in derivatives, and my bank is rather heavily invested in them. If it all goes belly up, it is the derivatives that will bring down the banks, IMHO.
Oh I'm quite sure they will not leave anything untouched; however, my preparations are unique to me and I have "reasons" to leave some portion with the bank. I won't go into those reasons, but they involve other people, so...
Before a credit union fails, the NCUA will try to sell its deposits and loans to another credit union. If the sale is successful, customers’ accounts are simply transferred.
If not, the NCUA will send customers a check for the insured balance of their deposits, usually within a few days of a credit union’s closing.
Deposits beyond $250,000 aren’t insured, even if they’re in an eligible account, but there’s a way around that: You can distribute your money across different credit unions to get coverage.
Credit union failure rates have typically been lower for larger than for smaller credit unions and lower for credit unions than for commercial banks of similar size. Credit unions also impose lower loss rates on their insurance fund than commercial banks. When failures do occur, it is most often small FICUs and "mundane” causes, such as a lack of trained managers, weak lending and collection operations, poor record keeping, and closures of sponsoring companies.
Bottom line - Credit unions are not-for-profit cooperatives owned and controlled by their local members. Banks, on the other hand, are for-profit institutions owned and controlled by their shareholders. So, unlike banks, credit unions have their members’ best interests at heart and keep their money in the community. Banks serve their customers. Credit unions serve their members..
I, personally, am a customer who uses a bank only for my primary checking account. I am a member who uses a credit union to save money.
I recently took half of my savings account (a tidy sum) and moved it from my bank to a local credit union that has a long history if stability and is well regarded in my area. Credit unions are forbidden by law to invest in derivatives, and my bank is rather heavily invested in them. If it all goes belly up, it is the derivatives that will bring down the banks, IMHO.
Sorry to necro this thread, but do you think the banks will only take savings accounts? Will they also touch checking? Would love your opinion!
Oh I'm quite sure they will not leave anything untouched; however, my preparations are unique to me and I have "reasons" to leave some portion with the bank. I won't go into those reasons, but they involve other people, so...
Great decision.
Before a credit union fails, the NCUA will try to sell its deposits and loans to another credit union. If the sale is successful, customers’ accounts are simply transferred.
If not, the NCUA will send customers a check for the insured balance of their deposits, usually within a few days of a credit union’s closing.
Deposits beyond $250,000 aren’t insured, even if they’re in an eligible account, but there’s a way around that: You can distribute your money across different credit unions to get coverage.
Credit union failure rates have typically been lower for larger than for smaller credit unions and lower for credit unions than for commercial banks of similar size. Credit unions also impose lower loss rates on their insurance fund than commercial banks. When failures do occur, it is most often small FICUs and "mundane” causes, such as a lack of trained managers, weak lending and collection operations, poor record keeping, and closures of sponsoring companies.
Bottom line - Credit unions are not-for-profit cooperatives owned and controlled by their local members. Banks, on the other hand, are for-profit institutions owned and controlled by their shareholders. So, unlike banks, credit unions have their members’ best interests at heart and keep their money in the community. Banks serve their customers. Credit unions serve their members..
I, personally, am a customer who uses a bank only for my primary checking account. I am a member who uses a credit union to save money.
Perfect response! Thank you.
I hope so. I just opened an account to get out of BofA.
Did the same with Chase. Bye bye.
I have some in a local bank and some in a CU
I have my silver in a box at the credit union.
I think it's pretty safe.
Only 30 dollers a year.