I got a letter from my Credit Union, saying that they want to become a federally chartered credit union, rather then the state chartered one they have been.
My question is: what’s the difference? I know how a bank and a credit union differ, but is there that much of a difference in this case? The letter says nothing but positive things, but I wasn’t born yesterday and have become a bit cynical over the long years.
Here’s the webpage for the NATIONAL CREDIT UNION ADMINISTRATION, the government body that oversees credit unions.
Like the more familiar FDIC, the NCUA guarantees your deposits to the tune of $100,000 as well as regulates the CUs to insure their solvency.
State credit unions do the same thing, but sometimes can be more vulnerable since states don’t have the deep pockets of the feds. The feds usually have stricter requirements to join and to stay a member.
I don’t know what state you are in, but do a google on your state for credit union insurance or regulation or something similar to find your own state’s regulator and what it covers.