|
Your Money is Safe at PG&W Employees FCU
Credit unions continue to be safe, consumer-friendly financial service providers that offer consumers with alternatives to for-profit financial institutions. And for many low-income people who cannot afford the fees and high minimum balances required at some banks, credit unions are their only source for affordable loans and a good return on savings.
Credit Unions Are Safe Because:
- All credit unions are covered by federal insurance from the National Credit Union Share Insurance Fund (NCUSIF) backed by the U.S. Government.
- Credit unions as financial cooperatives invest their money primarily in small consumer loans to their members. They are prohibited by law from investing in leveraged buyouts, loans to Third World countries or speculative land deals.
How the Credit Union Difference Improves Safety and Soundness:
- As cooperatives, credit unions are democratically controlled by the members.
- Every member is a shareholder with a vote in the operation of the credit union.
- Operating costs are lower in part because board members are trained volunteers.
- Not-for-profit credit unions tend to be conservatively run because members manage their own money.
- Personal loans predominate. Car loans and small personal loans account for more than half of credit union lending. As a result, the average loan delinquency for credit unions in the United States is around one percent of total loans.
How Your Accounts Are Federally Insured
The National Credit Union Administration, commonly referred to as NCUA, is the federal government agency that charters and supervises federal credit unions. NCUA also operates and manages the National Credit Union Share Insurance Fund (NCUSIF). Backed by the full faith and credit of the U.S. government, NCUSIF insures the accounts of millions of account holders in all federal credit unions and the majority of state-chartered credit unions.
The NCUSIF provides all members of federally insured credit unions with $250,000 in coverage for their individual accounts. These accounts include regular shares, share drafts (similar to checking), and share certificates. Individuals with account balances totaling $250,000 or less at the same insured credit union have full NCUSIF coverage.
If a person has more than $250,000 at any single credit union, several options are available for additional coverage because the NCUSIF provides separate insurance for other types of accounts such as joint accounts.
For more information on NCUSIF you may contact the credit union or the NCUA Insurance Hotline at 1-800-755-1030. You may also view information additional information at NCUA's Insurance Coverage Toolkit.
|
