How to Ensure the Credit Union I Choose Is Financially Secure
There are a variety of ways you can verify the financial stability of a credit union you are considering joining as a member. While the financial statements of credit unions are typically published online, these may not always be enlightening to the average banking customer. What typically matters most is:
- The bank’s insurance status
- Its reputation for customer service
- The quality of its products
- Its financial stability
You can look at credit union financial statements through websites like iBanknet, although the picture these figures paint isn’t always clear to the average banking customer.
The age of the institution and recent news stories may be more useful for people shopping for a new credit union for their banking. Credit unions that have been around for many decades are likely stable, reputable members of the community. If a credit union is in difficult financial straits, you may notice news stories about their challenges through a quick search online.
If a credit union you look up is actively opening new branches, acquiring or merging with other credit unions and expanding its membership and service offerings, it’s likely a good sign for the credit union’s stability and ongoing health.
No matter where you bank, it’s a good idea to verify that members are federally insured. You can look up a credit union’s details and insurance status on the National Credit Union Administration’s (NCUA) website to learn when it was founded and insured.
NCUA insurance is the most important protection offered to members of a credit union. It guarantees that your savings are insured up to $250,000 by the federal government, meaning if the credit union were to fail, you would get your funds back (up to the insured limit).
Both FDIC and NCUA insurance is offered on a per depositor, per credit union, per account category basis. This means the $250,000 coverage extends to all of a member’s accounts of a specific type. In other words, you would have $250,000 of coverage for all your share certificates, a separate $250,000 for your IRA or retirement account with the bank and another $250,000 for your checking accounts. This federal insurance is often adequate to cover all or the vast majority of a banking customer’s assets.
The NCUA also exerts oversight over credit unions. They have an interest in ensuring credit unions don’t fail, since they would have to pay out their funds to make banking customers whole in the event of credit union failure. They regularly assess credit union practices, their compliance with laws and regulations and the institution’s overall financial health.
You should ideally be seeking out banks or credit unions that are held to these high operational standards.
What Is Their Mobile Banking Like?
If you use mobile or online banking frequently, you may want to look up reviews for the credit union’s mobile banking applications on app stores prior to enrolling. OnPath Federal Credit Union’s mobile app has a high rating on both the Google App Store and the Apple App Store. If you, like many customers, prefer to do most of your banking online or with your mobile device, it’s likely a good idea to ensure the bank or credit union you choose has reliable and user-friendly mobile banking capabilities.
Compare Their Rates and Features
Maybe the most important step you can take is a side-by-side product comparison of the banks or credit unions you’re considering. Most banks and credit unions will list their product features on their website. Is earning cashback on debit card purchases important to you, or are you looking for a free checking account with no minimum balance? Do you want a checking account that actually pays dividends, like OnPath’s High Yield Rewards Checking?
Most consumers and business owners end up shopping between stable banks or credit unions that aren’t at risk of failure. What will end up mattering most to these customers are account features, the convenience of banking with mobile or online banking and the quality of service they receive from the bank’s staff.
We Put New Orleans Banking Customers First
The banking industry is crowded. Consumers have dozens or sometimes even hundreds of nationwide banks, regional banks and credit unions to choose from. At OnPath Federal Credit Union, we strive to set ourselves apart from other banks in the New Orleans area by providing exceptional services and products to local customers and businesses.
Find out why OnPath FCU is a popular choice by calling us today at 800.749.6193.