As a credit union member, you can have peace of mind knowing that your money is safe! Even in an unpredictable economy, your credit union provides robust protections and financial stability. Plus, as a financial cooperative, it puts your interests first. Here are six reasons why you can rely on your credit union to safeguard your money—even in uncertain times.
1. As a credit union member, your money is fully secured up to $250,000.
- Government Guarantee: Federally insured credit union deposits are backed by the full faith and credit of the U.S. government, with member deposits insured by the National Credit Union Administration (NCUA) up to $250,000 per member.
- Equal Protection: Just like the Federal Deposit Insurance Corporation (FDIC) protects bank deposits, NCUA provides the same level of deposit insurance for federally insured credit unions.
- Proven History: No federally insured credit union members have ever lost a single penny of their insured deposits.
2. Your credit union is dedicated to responsible financial management.
- Safety Net: By law, credit unions are required to maintain adequate capital reserves, ensuring they can handle unexpected financial challenges while continuing to serve members’ needs.
- Risk Management: Credit unions diversify their investments across various sectors and asset types, reducing their exposure to any single economic downturn.
- Transparency: Members have access to regular updates from their credit union, including annual reports and newsletters, so they are always informed about operations, financial standing, and news.
3. You are a co-owner of your credit union.
- Member-Owners: Unlike banks, which are owned by shareholders, credit unions are owned by their members, so their financial well-being is always the top priority.
- Democratic Principles: Regardless of how much money is in their account, each credit union member has one vote to help make key decisions like choosing directors and deciding on important policy changes.
- Independence: Credit unions are committed to maintaining their independence in business dealings and fundraising, making decisions in the best interest of members without external influence.
4. Your credit union is governed by its members.
- Elected Directors: A credit union’s board of directors is a volunteer group made up of members—chosen through a democratic voting process—so that the leadership reflects the interests of the entire membership.
- Decision Makers: The board of directors guides the credit union’s overall trajectory to safeguard its mission of serving members.
- Legal Responsibility: Directors are held to a high standard, with legal and ethical obligations to act in the best interest of both the credit union and its members.
5. You benefit from your credit union’s profits.
- Nonprofit Mission: Because they are not-for-profit financial cooperatives, credit unions operate without the pressure of generating profits for shareholders.
- Member Advantages: Credit unions reinvest their profits to benefit their members—providing lower fees, better interest rates, and enhanced member services.
- Community Impact: Profits are also reinvested into the communities where members live and work, with credit unions providing financial literacy programs and forming partnerships with nonprofit organizations and schools.
6. Your credit union helps you keep more of your money, even when times are tough.
- Lower Fees: Credit unions focus on minimizing costs for members, so they can save their money for what matters most.
- Competitive Rates: Even in uncertain economic conditions, credit union members benefit from favorable interest rates that help them save more and borrow less.
- Tailored Support: Credit unions provide personalized guidance and a wealth of financial education resources, helping members make confident and informed decisions about their money.
Government-insured, financially responsible, member-owned, and member-focused—credit unions are fully dedicated to making sure that your money is safe. No matter the economy, your credit union is committed to your financial security and success.
At Excite Credit Union, everything we do is based on the principle that people matter most. We are The Community’s Credit Union! Find out more about us: excitecu.org.