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FDIC/NCUA is there a difference?

Discussion in 'Financial Cents' started by Motomom34, Oct 4, 2018.


  1. Motomom34

    Motomom34 Monkey+++

    I am a member of a credit union and that is where the bulk of my banking takes place. I have a friend who keeps telling my to move my money out of the credit union because it is not FDIC insured. My credit union is NCUA insured.

    FDIC and NCUA seem like the same thing to me but my friend insists that credit unions are not as protected as banks. Has anyone heard this? I am happy with my credit union but do want so security with were I do my banking.
     
    Dunerunner likes this.
  2. duane

    duane Monkey+++

    I have seen them come thru a couple failures, 2008 for example, and everyone got their money, both banks and credit unions, but neither fund is set up to handle over a couple percent failures in the system. The people who made out the worst were people who had loans called when the CU or bank went under and lost everything without missing a payment. Its all based on "trust", while we have our IRA in a credit union, if the SHTF, its all toilet paper, bank, CU, stock, cash, mortgages, they are all backed with nothing and worth in real terms just exactly what someone else will give you for them. Put money into my retirement plan in my 30's when I could buy a house for $7,500, gas for a quarter, lost all of it once when the stocks and holding company I had it invested in, all good investments according to my ex financial advisor, failed in the early 1980's, lost half of the savings I had rebuilt in 2000 when invested in T Rowe Price IRA which did at least split up the risks, medical expenses eating up what is left. Any money not in your own hands in something tangible, is at best in the long term worth just exactly the government and fed reserve value it at. So far best long term investments I have made,20 plus years, have been metals, land, tools, firearms, and rental properties. While cash value is low, greenhouse and gardening equipment has been the best investment I ever made with good wood stove and chimney a close second. On careful reconsideration, the money for the marriage license was perhaps the best investment I ever made, even though the maintenance cost can sometimes exceed expectations.
     
    Last edited: Oct 4, 2018
    Mountainman and Motomom34 like this.
  3. BTPost

    BTPost Stumpy Old Fart Snow Monkey Moderator

    Both are similar tn scope and BOTH routinely do Audits of the institutions they serve...Both are backed by the Federal .Gov....
     
    Motomom34 and Dunerunner like this.
  4. In addition there is the FSLIC, the Federal Savings and Loan Insurance corporation. Credit Unions, Like Co-Ops may be slightly more customer oriented.
     
    Motomom34 likes this.
  5. duane

    duane Monkey+++

    As BTPost so politely put it, all are based on the full faith and credit of the government, which is 21 trillion in the hole and going in debt over 1 trillion this year in what many see as the best times in a generation. YMMV. I also agree that the CU,s are more likely to be local than our neighborhood Royal Bank of Scotland or whatever franchise bank.
     
    Mountainman, Motomom34 and Dunerunner like this.
  6. SB21

    SB21 Monkey+++

    There’s an easy fix for that. Just keep a grand in the bank and the rest at home. That way you won’t lose much. But I can’t help ya with your investments.
     
    Motomom34 likes this.
  7. Motomom34

    Motomom34 Monkey+++

    Not sure about keeping all my money in my home. Not really looking for help on my investments but years ago when the big banks were being bailed out,people were stating move to credit unions. Credit Unions are more local, I figure like shopping locally so I think they are better for the community. After my friends encouragement to move to a bigger bank because they were FDIC insured, I was confused. I do know I will never go back to Chase bank. They may have branches all over the country but their service went down and they received bailout money.
     
    Mountainman likes this.
  8. T. Riley

    T. Riley Monkey+++ Site Supporter++

    I have never heard of anyone losing a dime in a bank or credit union failure. The banks/credit unions that purchase failed institutions want the deposits and good assets. The deposits are a liability of the acquiring institution so the get paid, dollar for dollar, and sometimes more, to take the deposits. Then, with all or part of that money, they buy the good loans, investments and real estate of the failing bank. They get to pick and choose. This leaves the FDIC or tax payers, with all the crap assets, bad loans, etc. I went through it in 2008 when every bank and credit union in Tyler Texas failed except one, including the one I worked for. People with money made fortunes buying failed institutions.
     
    Dont and Motomom34 like this.
  9. oil pan 4

    oil pan 4 Monkey+++

    Keeping all your money at home is dumb.
    Only drug dealers and money launderers have large amounts of cash laying around and the system sees you as such and you are guilty until proven innocent and the burden of proof is on the accused.
    The police will gladly hold on to your money while you prove you aren't a drug dealer or money launderer.
     
  10. Idahoser

    Idahoser Monkey+++ Founding Member

    keeping all your money in DOLLARS or any fiat currency is giving it away. Whatever interest rate you might get is never going to keep up with the hidden tax of inflation.
    Our grandparents understood saving. We must take an extra step to save, as the dollars back then were backed by real value, we must exchange the fiat for value and save that.
     
    Mountainman likes this.
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