Safety and Soundness of Credit Unions
Credit union members in South Carolina never have to worry about the safety of their savings deposits. All 81 credit unions in South Carolina carry federal insurance from the National Credit Union Administration (NCUA) covering member deposits up to at least $250,000.
The NCUA, a U.S. government agency, is backed by the full faith and credit of the United States and provides federal insurance to credit unions the same way the Federal Deposit Insurance Corps. (FDIC) insures banks.
There are nearly 1.3 million South Carolina credit union members, and not one penny of insured deposits has ever been lost in the history of the share insurance fund.
And despite the current economic unrest, credit unions are not only surviving, they are thriving. South Carolina credit unions have recently fared better than peers in growth in assets, loans, and market/shares (deposits); growth in net worth; and percentage of loans to shares, indicating credit unions are using deposits to fund needed loans. Net worth indicates South Carolina credit unions are better capitalized than comparable regional and national financial institutions.
When it comes to protecting your deposits, credit unions are and will remain one of the safest choices you can make, no matter the current economic conditions.
Credit union deposits are federally insured
In the following video, Credit Union National Association (CUNA) President/CEO Dan Mica explains federal savings insurance at credit unions as well as the strength and soundness of credit unions.
The following resources are provided to give you a better understanding of share insurance and the financial stability of your credit union.
National Credit Union Share Insurance Fund (NCUSIF)
The shares (savings) in credit unions are insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of the National Credit Union Administration (NCUA). Established by Congress in 1970 to insure member share accounts at federally insured credit unions, the NCUSIF is managed by NCUA under the direction of the three-person NCUA Board. Share insurance is similar to the deposit insurance protection offered by other financial institutions.
For more information, download the NCUA brochure on federal insurance or read the NCUSIF frequently asked questions.
NCUA share insurance estimator
To estimate your share insurance coverage, use the NCUA Share Insurance Estimator.
State of the Region
Download the 2007 State of the Region for federally insured credit unions in SC.
For the latest information on the NCUA's Corporate Stabilization Plan, visit this page.
The links below are recent articles and video clips concerning credit unions and the economic crisis.
Dan Mica on the State of Credit Unions - CNBC (Dec. 17)
Bad Times for Banks Mean Boom Times for Credit Unions - Time Magazine (Oct. 23)
Know the Rules to Keep Your Cash Safe - Washington Post (Oct. 9)
See you at the C-U: Why credit unions make sense now more than ever - MarketWatch (Oct. 6)
As Big Banks Converge,
Depositors Find Deals
At Smaller Institutions - Wall Street Journal (Oct. 1)
Navigating Troubled Times: Answers for Readers - New York Times (Oct. 1)
Banks Crisis: 10 Things to Know Now - MSN Money (Sept. 30)
As Banks Fail, Credit Unions Deserve a Look - The News and Observer (Sept. 28)
The Crisis and Your Pocketbook - Washington Post (Sept. 25)
Small Business Owners Deal with the Financial Crisis - BusinessWeek (Sept. 19)
"Credit unions are a safe harbor" - Neil Weinberg, senior editor of Forbes magazine on CNN (Sept. 18)
How Credit Union Savings are Insured by the Government - Rodney Hood, NCUA vice chairman on Home and Family Finance Radio