The answer is - very safe. 𝗙𝗼𝘅 𝗥𝗲𝗽𝗼𝗿𝘁𝗲𝗿 𝗕𝗿𝗲𝘁𝘁 𝗗𝘂𝗺𝗮𝘀 𝗶𝗻𝘁𝗲𝗿𝘃𝗶𝗲𝘄𝗲𝗱 𝗺𝗲 for this article:
Mark Treichel, who spent 33 years at the NCUA and served as executive director of the agency, points out the recent bank runs have been driven by uninsured deposits, and it is "𝘀𝘂𝗯𝘀𝘁𝗮𝗻𝘁𝗶𝗮𝗹𝗹𝘆 𝗹𝗲𝘀𝘀 𝗹𝗶𝗸𝗲𝗹𝘆" for that to happen to a credit union.
𝗧𝗿𝗲𝗶𝗰𝗵𝗲𝗹, 𝘄𝗵𝗼 𝗻𝗼𝘄 𝗮𝘀𝘀𝗶𝘀𝘁𝘀 𝗰𝗿𝗲𝗱𝗶𝘁 𝘂𝗻𝗶𝗼𝗻𝘀 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗡𝗖𝗨𝗔 𝘃𝗶𝗮 𝗵𝗶𝘀 𝗰𝗼𝗺𝗽𝗮𝗻𝘆, 𝗖𝗿𝗲𝗱𝗶𝘁 𝗨𝗻𝗶𝗼𝗻 𝗘𝘅𝗮𝗺 𝗦𝗼𝗹𝘂𝘁𝗶𝗼𝗻𝘀, 𝗽𝗼𝗶𝗻𝘁𝘀 𝗼𝘂𝘁 𝘁𝗵𝗮𝘁 𝘁𝗵𝗲 𝗯𝗮𝗻𝗸𝘀 𝘁𝗵𝗮𝘁 𝗵𝗮𝘃𝗲 𝗳𝗮𝗶𝗹𝗲𝗱 𝗿𝗲𝗰𝗲𝗻𝘁𝗹𝘆 – 𝗻𝗮𝗺𝗲𝗹𝘆 𝗦𝗩𝗕, 𝗦𝗶𝗴𝗻𝗮𝘁𝘂𝗿𝗲 𝗮𝗻𝗱 𝗦𝗶𝗹𝘃𝗲𝗿𝗴𝗮𝘁𝗲 – 𝗮𝗹𝗹 𝗵𝗲𝗹𝗱 𝗮 𝗹𝗮𝗿𝗴𝗲 𝗽𝗲𝗿𝗰𝗲𝗻𝘁𝗮𝗴𝗲 𝗼𝗳 𝘂𝗻𝗶𝗻𝘀𝘂𝗿𝗲𝗱 𝗱𝗲𝗽𝗼𝘀𝗶𝘁𝘀, 𝘄𝗶𝘁𝗵 𝗦𝗩𝗕'𝘀 𝘂𝗻𝗶𝗻𝘀𝘂𝗿𝗲𝗱 𝗱𝗲𝗽𝗼𝘀𝗶𝘁𝘀 𝘂𝗽𝘄𝗮𝗿𝗱𝘀 𝗼𝗳 𝗮 𝘄𝗵𝗼𝗽𝗽𝗶𝗻𝗴 𝟵𝟬%.
However, credit unions are much less likely than banks to have that problem, given that they cater to working people and their depositors are largely individuals whose accounts are lower than $250,000.
Treichel says data shows that the largest 800-or-so banks in the U.S. have an average of roughly 36% of their deposits uninsured. However, even the largest credit unions with more than a billion dollars in assets only have around 9% of their deposits uninsured.
𝗪𝗵𝗮𝘁 𝗜 𝗮𝗹𝘀𝗼 𝘀𝗮𝗶𝗱 𝗯𝘂𝘁 𝗱𝗶𝗱𝗻'𝘁 𝗺𝗮𝗸𝗲 𝘁𝗵𝗲 𝗰𝘂𝘁 𝗶𝘀 𝘁𝗵𝗮𝘁 𝟮𝟬% 𝗼𝗳 𝗹𝗮𝗿𝗴𝗲 𝗯𝗮𝗻𝗸𝘀 𝗵𝗮𝘃𝗲 𝗺𝗼𝗿𝗲 𝘁𝗵𝗮𝗻 𝟱𝟬% 𝗼𝗳 𝗱𝗲𝗽𝗼𝘀𝗶𝘁𝘀 𝘂𝗻𝗶𝗻𝘀𝘂𝗿𝗲𝗱. 𝗭𝗘𝗥𝗢 𝗻𝗮𝘁𝘂𝗿𝗮𝗹 𝗽𝗲𝗿𝘀𝗼𝗻 𝗰𝗿𝗲𝗱𝗶𝘁 𝘂𝗻𝗶𝗼𝗻𝘀 𝗮𝗿𝗲 𝗮𝗯𝗼𝘃𝗲 𝟱𝟬% 𝗮𝘀 𝗼𝗳 𝘆𝗲𝗮𝗿 𝗲𝗻𝗱.
If you liked this post sign up for my newsletter or follow me on LinkedIn: