Credit Unions are Increasing Federally Backed Insurance
The FDIC increased American Banks' insurance to $250,000 and credit unions are increasing their federally backed insurance too.
A lot of people thought credit unions were safe because they did not take part in the sub-prime mortgage trend, but the government is still requiring their insurance called, the National Credit Union Administration, to increase.
Like the FDIC, their insurance protection has gone from $100,000 to $250,000. The branch manager at Numerica in Kennewick says this is the best way they can reassure people that they're money is safe and secure.
Unlike many banks, credit unions have very conservative investment practices.
"The NCUA has never paid a claim ever because you're member owned as a credit union that's why the strength of credit unions are high, because the members own us," said Gina Brown, Numerica Credit Union, Branch Manager.
Numerica says it's safer to bank with a credit union. They do not invest money overseas and have more conventional loan policies.
Since the NCUA was created, not one penny of savings has ever been lost by a member of a federally insured credit union.