Credit unions continue to be strong and secure.

This has been a very difficult year for the financial services industry, including credit unions. Credit unions have fared much better than banks. As of October 26th, 107 banks have gone out of business in 2009. In the same time period only 21 credit unions have gone out of business. 

You might ask, why have so many banks gone out of business compared to credit unions? I believe the answers are simple:

Credit unions focus on what is best for our member/owners (they aren’t just customers to us), while banks focus on what is best for their stockholders – at the expense of their customers.

  • Credit unions did not get caught up in the secondary mortgage market like many banks, or chase the yield on risky mortgage products just to increase our income. 
  • Our approach to lending and investing is tried and true. When you entrust us with your money we manage it as carefully as if it were our own money, because after all as a member/owner – we work for you.

I tell members that they should put safety first when investing their hard-earned dollars. Even if that means not getting the highest rate in the market place all the time. I also encourage members to ladder their investments at the credit union. Don’t have all of your certificates coming due at the same time; spread them out over time from short term to long term. You may pass up some short term yield, but in the long term I believe you will come out ahead. You can Google “ladder a certificate portfolio” on the Internet and get more information. 

Credit unions have received favorable press this year from many national organizations and news networks. If you are not a credit union member you may want to consider joining ours – we are open to anyone who lives, works, worships or attends school in Licking County.

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