Credit union deposits are insured up to $250,000 by the NCUA, which is backed by the full faith and credit of the US government. Most banks are similarly insured by the FDIC. Consumers do need to be careful about storing their money in online or mobile fintechs and other investments like bitcoin that are not insured by the NCUA or the FDIC. Credit unions, and yes banks too, are safer options. That backing of deposits by the full faith and credit of the US government is a very real benefit that everyone should be aware of. We live in a volatile world, where startups come and go, and so all consumers should be aware of the safety and soundness provided by Fedrally-insured financial institutions. I work at #Mazuma CreditUnion.
HAPPY ANNIVERSARY! Today, as the Federal Credit Union Act turned 90 years old, the NCUA brought together current and former Board members spanning the last 45 years. The passage of that act was a watershed moment in our nation’s history. But, just as that law was forward-thinking when enacted nearly a century ago, it must evolve to reflect current realities with an eye to the future for members and their #creditunions, especially for people of modest means so that we can grow our middle class and advance economic opportunity for all Americans. Thanks to Tanya Otsuka, Debbie Matz, Christiane Gigi Hyland, Dennis Dollar, Geoff Bacino, and Harold Black for sharing their insights with staff about past challenges faced by the system and aspirations for its future.
Chairman at NCUA
6moThanks for reminding everyone about the stability of share deposit insurance.