Is My Deposit Safe at the Credit Union?

Over the past several days and weeks this topic has been heard mentioned many times.  And now with the Office of Thrift Supervision taking over IndyMac Bank in California, more people are wondering just how safe their deposits are.  


The member deposits at all federally chartered credit unions and most state chartered credit union are insured up to $100,000 by the National Credit Union Share Insurance Fund, an agency of the federal government.  This insurance is backed by the full faith and credit of the United States Government just like the FDIC program for banks.  The NCUSIF also insures certain accounts up to $250,000 also just like the FDIC program. 


So are credit union deposits safe?  Yes, within the insured limits and above that – based upon the financial strength of the individual credit union.  And in the case of Hopewell Federal Credit Union, we also provide private insurance via Excess Share Insurance, a Dublin, Ohio based insurance company.  The private insurance provides for an additional $250,000 in insured deposit coverage.  A Hopewell Federal member, with an individual account could be insured up to $350,000 in deposit.  The first $100,000 would be insured by the NCUSIF and the additional $250,000 by ESI.  IRA accounts would qualify for additional coverage. 


In some of my conversations with individuals who know nothing about credit unions, they claim credit unions are high-risk institutions.  That couldn’t be farther from the truth.  Credit unions, as an average, have higher reserves than banks. And Credit unions are member owned so they are not pressured into earning high profits for stockholders. 


The mortgage crisis has created a lot of doubt in the banking system.  I tell you that the credit union system is strong and financially stable.  Credit unions do not make a practice of offering high-risk loans.  Credit unions are not part of the sub-prime mortgage crisis. 


If you have question about the Nation Credit Union Share Insurance Fund, check out their web address at and click on share insurance.


Invest safely at your credit union.




One Response

  1. Al –

    Outstanding post! A lot of people are not clear about the share insurance fund that protects their accounts. With so many scary headlines out there, it’s great to see you communicating these reassuring messages to people.

    Keep up the good work!

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