Credit Union Safety – How Safe Is My College Account?
Many parents and grandparents saving for a child’s college education have found that credit unions offer attractive options compared to other institutions. This is especially true in the area of traditional savings accounts, money market accounts, and Certificate’s of Deposit (CD’s). Often times, the interest rates offered for these fixed income investments may exceed what you find at traditional banks or brokerage houses by 1% or more per year. But naturally, that increase in returns has many people asking if there is also an increase in the risk of losing your money if your credit union goes out of business. While it never hurts to be cautious these days, you can rest assured that most credit unions are just as safe as the large national banks. Most credit unions, which operate similar to banks but are in fact owned by their customers, are backed by the “full faith and credit of the U.S. government.” However, instead of being covered by the better known
