RebelCapitalist: Financial Information for the Rest of Us

Where is my money safe?

Where is my money safe with all of the problems with banks? I am worried that banks are going to fail.

Your Answer

Don't panic. How you considered a credit union?

Posted by: Mr_Blue on 2008 09 22

There is no question that there are significant problems with our financial system. But there are a few safeguards in place such as deposit insurance from the Federal Deposit Insurance Corporation (FDIC). See New School.

But FDIC has warned that it may have to borrow money to meet any potential increase in bank failures.

One other option: credit unions. Credit unions are an excellent alternative to banks.

More info, please.

Posted by: Escortrider on 2010 01 30

Can you spell out the reasons for credit unions being “an excellent alternative to banks”? Can’t credit unions also be mis-managed? Don’t some of them also fail? I am not saying you are wrong, not at all; I would just like more specifics.

Fees and Service

Posted by: Mr_Blue on 2010 01 30

Credit union fees (if any) are much lower than bank fees - checking fees, ATM fees, various credit card fees (yes, some CUs issue credit cards). Loan rates are often lower too.

CUs are not for profits - they serve their members as opposed to for profit banks that serve their senior executives and shareholders more than customers.

Answer, your question, yes CUs can be mismanaged that is why like with anything else research is important.

Here is recent article on CUs

http://money.cnn.com/2009/12/29/pf/saving/credit_unions_vs_banks/

Thank you

Posted by: Escortrider on 2010 01 30

Thank you for the information and for the link to the article, which I have now read. This was very helpful to me, as I’m sure it will be to others.