With the recent bank failures in the news some might wonder if their funds are safe in their local credit union. A most reassuring fact is that "no one has ever lost a single penny of insured share deposits within the credit union system," Todd Harper, the National Credit Union Administration (NCUA) Chairman, announced in a recently released statement.
Credit unions remain well-capitalized and strong, and Credit Union of America (CUA) is a prime example. CUA's current net worth capital ratio is a robust 12.55%. The state and NCUA monitor and conduct thorough examinations of CUA's financials and operations on an ongoing basis. We're proud to receive excellent reviews from state and federal examiners and external auditors. Evaluations of CUA’s operations and financial management also reveal that CUA follows strict regulatory guidelines developed to ensure the safety and soundness of your financial cooperative. In fact, CUA is one of the highest-rated credit unions in Kansas for safety and soundness.
NCUA Share Insurance
Consumer deposits held at CUA are insured by NCUA up to the allowed limit. The primary coverage of deposits is $250,000 per member. However, with proper account ownership and beneficiary structure, deposits can be insured up to $2 million. If you would like to review your account coverage, visit with a CUA deposit specialist to make sure your account ownership is appropriately structured for maximum insurance.
The Credit Union Difference
+ Not-for-profit Financial Cooperative.
+ Democratically controlled by all member-owners.
+ Volunteer board of directors.
+ Profits are invested in member services, technology, facilities, and better rates.
+ Every member has one vote on critical credit union issues.
+ Executive c-suite employees have one vote like all other members. They do not own stock in the credit union.
x Controlled by stockholders, one vote for every stock unit owned.
x Paid board of directors.
x Profits are paid to a small group of stockholders/board members.
x Customers have no ownership rights or votes.
x Executive c-suite employees are often stockholders and/or on the board.
A Strong Foundation
In addition to excellent exams and NCUA insurance, the foundation and history of financial cooperatives are instrumental in the protection offered to our members.
- Credit unions are member-owned, meaning members have a say in the workings of the credit union.
- Members elect the credit union's board of directors and vote on critical issues that affect the credit union. One member equals one vote.
- Credit unions have a long history of stability and resilience. In the 2008 financial crisis, credit unions didn't receive any bailout money, and no credit unions failed.
- Credit unions focus on serving their members and their communities rather than generating profits and lining the pockets of officials, stockholders and board members.
- Credit Union of America does not engage in risky or speculative behavior that can lead to financial instability. Failed banks often invest heavily in mortgage-backed securities and have market exposure to high-tech and cryptocurrency and cryptocurrency-related firms.
A Safe Place
It can be scary when large banks fail. Those failures generally boil down to organizations that participate in risky behaviors focused on generating significant profit for a few officials and that need to be more transparent with their management decisions. Credit Union of America is the antithesis of those banks. We conduct open meetings via our Annual Meetings, we welcome member input and questions, we have a volunteer board of directors that does not benefit from profits, and our members own us. Our member owners include our employees and management. We are as invested in the success of this credit union as each of our members. Credit Union of America is one of the absolute safest places for your money.
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