We have banked with credit unions since 1976. We switched from a small one for teachers to a larger one through my wife’s employer that offered more services. Basically her credit union offered every thing but mortgages, which they do now. The only time we deal with a bank now is for a couple of credit cards and when we want to buy foreign currency before we travel. Maybe because credit unions are so much smaller, if and when they fail, they do not make the news, but I can not recall ever hearing about one failing.
2 Likes
We’ve been with credit unions almost as long.
We still use our Michigan one for almost everything. They are the only credit union we’re aware of that gives you a rebate on your loan payments… offsets a significant chunk of the interest portion of the payment!
Rob
He is no fool who gives what he cannot keep to gain what he cannot lose.
3 Likes
They’re small and don’t get widely reported. I remember a few going under during the 2008 fiasco, so I was sure it happens. Apparently it happens a fair amount; here’s a partial list:
3 Likes
Key Bank might be one of the safest banks. The bank is a very good size. The bank is one of the top five SBA loan originators. I am thinking their assets are guaranteed to a better degree.
1 Like
Thanks for looking that up.
1 Like
No experience with one going belly up, but the credit union we use quickly emailed all of us to reassure us they were no SVB and to remind us that our accounts were insured up to $500K. They purchase extra insurance for our accounts. They can afford to, since the interest they charge is higher than I can get elsewhere and the interest we earn lower. I don’t keep extra funds there and the $250K insurance would cover us just fine.
IP
1 Like
So, 30 have gone under in the last 10 years. Three per year out of some 5,000.
30/5000 = 0.006 or 0.6% per year
DB2
1 Like