When you were choosing your financial institution, what were your criteria? Many would say they need a branch that’s close to home or a solid recommendation from someone they know, or even a great online banking system. However, what most people don’t think about when choosing their bank or credit union is if their money will be insured – which could be the most important factor of all.
In the 1930s, during the severe economic stress of the Great Depression, the federal government recognized that an authority was needed that could protect people’s deposits if a bank failed. During this time, the FDIC, or the governing agency and insurance provider of banks, was born. By the 1970s, credit unions had increased in popularity so much that they, too required their own agency, and the NCUA (National Credit Union Administration) was formed.
Today, the NCUA regulates, charters and manages the National Credit Union Share Insurance Fund. Backed by the full faith and credit of the U.S. government, this fund protects individual accounts up to $250,000 and protects the accounts of millions of credit union members in all federal credit unions across the country. Potentially even more important than the insurance itself, in order for a credit union to qualify for NCUSIF coverage, they must maintain sound and quality operational standards, helping to ensure that those institutions won’t fail in the first place.
Of course, Florida Credit Union is proudly insured by the NCUA and you’ll see displays of the blue NCUA stickers all throughout our branches and even on the bottom of this page! If you aren’t sure about your financial institution, be sure to look for the NCUA or FDIC logos.
Like this article? Check out "Do You Know the Credit Union Difference?"