How Safe is a Credit Union?
In uncertain economic times, you want to know that deposits at your O’Fallon credit union are safe. Fortunately, credit unions offer one of the most secure options available for managing your money. Keep reading to learn more about the key features that make depositing with a credit union a smart decision.
Fully Insured Deposits
Shielding yourself from risk is a key part of smart financial management. The National Credit Union Share Insurance insures all the money you place in an accredited credit union by up to $250,000. Backed up by the federal government, this fund comes entirely from member credit unions.
Safe Lending Practices
As community institutions, credit unions employ time tested lending practices. They don’t engage in “sub-prime” mortgage lending or any of the risky behavior of large-scale investment banks. Instead, they lend responsibly to members, with a business model crafted toward long-term success, not short-term gains. That insulates your deposits from risk, and ensures that you’ll have a lender you can trust when you need it.
The National Credit Union Administration performs rigorous oversight over credit unions. Every year, federal examiners and accountants examine a credit union’s handling of its assets, financial records, and adherence to regulatory standards. This oversight helps ensure that a credit union is always acting in its members’ best interests.
A Community Focus
A typical credit union lends primarily to members seeking consumer and small business loans. By avoiding large commercial loan ventures, credit unions avoid the financial risks that make too many banks fail. Additionally, credit unions are prohibited by regulatory agencies by making speculative investments, further shielding your deposits from risk.
For more than 70 years, GCS Credit Union has provided dedicated financial services to member owners throughout the O’Fallon, IL area. Our high level of service has allowed us to achieve the NCUA’s top rating for the past decade. Call (618) 797-7993 to learn more about the benefits of working with us.