 | Stan Cowan
has worked in the financial industry for over eight years and is currently VP of marketing for Boeing Wichita Credit Union. His education includes a BBA and MBA from Wichita State University. He also teaches part-time for the Wichita branch of Baker University. Stan can be reached at (316) 651-5169 or scowan@bwcu.org |
Banking & Finance
2004-04-01 14:46:00
How secure are the funds?
: Are funds in a savings account as secure in a credit union as they are in a bank? Does the FDIC guarantee funds in a credit union up to $100,000?
ANSWER: Banks that are members of the FDIC have their customers' deposit accounts insured normally up to $100,000. Credit unions are regulated by the National Credit Union Administration (NCUA), so that's where their deposit accounts are insured normally - also up to $100,000. Some institutions choose to insure their customers'/members' funds using supplemental insurance beyond the $100,000 limit. Remember, this goes for all types of deposit accounts, not just savings accounts. Some limits do apply, so be sure and get all the facts from your financial institution.QUESTION: Is one's credit union a good place to seek refinancing of his/her house? If so, are rates typically competitive? ANSWER: Yes! Your credit union is a very good place to start. But don't stop there. Compare your credit union's rates, fees and mortgage loan features to many other banks. Only then can you truly see the differences. Some features to consider include:• Payment options (biweekly, online access, balloon payments)• Fees (closing costs, rate locking, application)• Rates (adjustable, fixed)• Down Payment (many programs exist from 0% down to 20% down to avoid private mortgage insurance) Be sure and ask for a 'good faith' estimate from your real estate loan officer. Also, remember that personal service plays a huge role as well. Expect exceptional service from your financial institution. It's your money. You have the power!
