Ministry & Finance

Are Deposits In Credit Unions As Safe As They Are In Banks?

Written by ACCU Staff | Apr 19, 2019 6:00:00 PM

The answer is YES...and we also privately insure deposits (shares) in excess of federal limits.

Most people are familiar with the Federal Deposit Insurance Corporation (FDIC), the federal agency that regulates and insures the deposits of banks and thrift institutions. However, they are not aware of the National Credit Union Administration (NCUA). The NCUA is the federal agency that regulates and insures the deposits of nearly 5,800 credit unions in the United States, that serve more than 104 million members. Both the FDIC and NCUA insure individual accounts up to $250,000.  America's Christian Credit Union also privately insures deposits (shares) in excess of federal limits with American Share Insurance. The FDIC and NCUA both exist to build public confidence in the banking and credit union systems and are backed by the full faith and credit of the United States.  However, there are clear differences between banks and credit unions.

Banks are for-profit, stockholder-owned institutions while Credit Unions are non-profit, member-owned cooperative organizations that exist to serve their members.  Profits made by credit unions are returned to members such as yourself in various forms and are also used to increase financial reserves.

Did you know America’s Christian Credit Union is classified as a “well-capitalized” (which is the highest tier) financial institution by our NCUA regulators? 

Our 2017 Return on Assets (ROA) exceeded the ROA of the two largest banks in the United States and delinquent loans in ACCU’s entire loan portfolio are less than 0.50% (as of September 2018), which is much lower than our peer Credit Unions and Banks.

Do you know if your money is growing where it lies now? Have you kept up with the rate changes? Click here to see our secure deposit and investment specials just for you or your organization. If you have any questions, you can call us at 800-343-6328.