Don’t worry, be happy
After the publication of our cover story last week on breaking free of banks (“Break the bank,” Nov. 3), some readers argued that our coverage of the credit unions alternative did not include the fact that credit unions are not insured by the Federal Deposit Insurance Corporation (FDIC).
Banks love to make this argument, but while credit unions are not insured by the FDIC, that doesn’t mean their deposits are not federally insured.
Since 1970, they’ve been insured by the National Credit Union Share Insurance Fund (NCUSIF). More than 7,000 credit unions are covered by the NCUSIF, including both the Greater Nevada Credit Union and the Great Basin Federal Credit Union, which were profiled in our article.
If you don’t believe us, the Wall Street Journal this week reported on the exodus from banks (“Credit unions poach banks,” WSJ, Nov. 7) and its article included this: “Deposits at banks and credit unions are insured up to $250,000.”
Other local credit unions, like Frontier Financial Credit Union, are insured through American Share Insurance, the largest provider of private share insurance in the country.