Frequently Asked Questions | Taunton Federal Credit Union (2024)

FAQs

What is important to ask credit unions? ›

Make sure your account will be insured—Whether it is a state or federally licensed (or chartered) financial institution, you want to ask if it's a member of, or that is insured by, either the Federal Deposit Insurance Corporation (or FDIC) or, in the case of a credit union, the National Credit Union Association (or ...

One question that often arises is, "Are Credit Unions Safer than Banks?" If you're looking for a short answer, you'll be happy to know that we're not making you read the whole post: Credit Unions and banks are roughly identical in safety because deposits at both are insured by the Federal government to $250,000.

In addition to using profits to lower fees, credit unions typically offer more competitive rates on deposit accounts than many banks. Member benefits. When you join a credit union, you become a share owner and may be able to weigh in on leadership elections, initiatives and policies that affect you.

For decades, bankers have objected to the tax breaks and sponsor subsidies enjoyed by credit unions and not available to banks. Because such challenges haven't slowed down the growth of credit unions, banks continue to look for other reasons to allege unfair competition.

Liquidity Risk: The risk of not having sufficient liquid assets to meet the credit union's short-term obligations, which could impact its ability to function effectively and serve its members. Interest Rate Risk: Credit unions often have a significant portion of their assets and liabilities tied to interest rates.

No. Credit unions are insured by the National Credit Union Administration (NCUA). Just like the FDIC insures up to $250,000 for individuals' accounts of a bank, the NCUA insures up to $250,000 for individuals' accounts of a credit union.

It's uncommon for credit unions to fail, but it does happen. In 2023, there were more than 4,600 federally insured credit unions in the U.S. and three of them failed: Yonkers Postal Employees Credit Union, Inter-American Federal Credit Union, and Valwood Park Federal Credit Union.

One of the only differences between NCUA and FDIC coverage is that the FDIC will also insure cashier's checks and money orders. Otherwise, banks and credit unions are equally protected, and your deposit accounts are safe with either option.

Is it safe to leave money in credit union? ›

Like banks, which are federally insured by the FDIC, credit unions are insured by the NCUA, making them just as safe as banks. The National Credit Union Administration is a US government agency that regulates and supervises credit unions.

Weaknesses of Credit Unions

Membership is restricted. The membership of a credit union is restricted to a specific community, most often a religion, profession, or geographic location.

Credit unions are regulated by the National Credit Union Administration, or NCUA, or by state agencies. The NCUA oversees the safety and soundness of all credit unions. If you want to check up on your credit union, make sure it's federally insured by the NCUA and look at its finances, you can do that any time.

Is there a minimum balance requirement to avoid a monthly fee? If so what is it? How soon is my money available after I deposit it? (Both banks and credit unions can put holds on large and sometimes even small deposits). Do I need to open a checking account or some other account to have a savings account?

Credit unions are regulated by the National Credit Union Administration, or NCUA, or by state agencies. The NCUA oversees the safety and soundness of all credit unions. If you want to check up on your credit union, make sure it's federally insured by the NCUA and look at its finances, you can do that any time.

In today's digitally-driven world, credit union members expect more than just traditional banking services. They seek seamless digital experiences, personalized support, and innovative financial solutions.