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Some people have chosen CU's over big banks because they were not tied to the Feds. The feds come in over night and close a bank and sell it off, don't see how they can do that if it is "customer owned"?
Being backed by the fed really means nothing but trouble.
They do that because the bank is, or is close to, insolvent. If there was no federal protection then when the bank became insolvent you would lose your deposits unless some other institution came to the rescue, not a guarantee.
The feds do take over failing credit unions in much the same way they take over failing banks...
They do that because the bank is, or is close to, insolvent. If there was no federal protection then when the bank became insolvent you would lose your deposits unless some other institution came to the rescue, not a guarantee.
The feds do take over failing credit unions in much the same way they take over failing banks...
There are credit unions that are not affiliated with the NCUA but you are taking a significant risk by using one of them.
that just leads me back to my original question, why a CU and not a BB?
And the no fees argument doesn't reel me in....why should I feel safer with a CU?
that just leads me back to my original question, why a CU and not a BB?
And the no fees argument doesn't reel me in....why should I feel safer with a CU?
It's a philosophical thing. At the end of the day a bank's job is to make money for its shareholders. To do that it may take risks that may have poor outcomes. They do not and should not have the depositors best interests in mind.
Credit Unions are not driven to increase profits. Since that is not the goal they can take fewer risks. Since they are owned by the depositors they have to keep their interests in mind.
Your money, as long as it is under the insurance limits, is equally safe at a large bank or a credit union. You choose a credit union for lower fees and better service.
They do not and should not have the depositors best interests in mind.
I disagree. It doesn't matter what type of company you are, if you aren't going to keep your customers happy and they turn elsewhere, then you're not going to survive, period. Banking these days is so automatic and sales fueled that it's become nothing more than a pithouse of fees and more fees.
I disagree. It doesn't matter what type of company you are, if you aren't going to keep your customers happy and they turn elsewhere, then you're not going to survive, period. Banking these days is so automatic and sales fueled that it's become nothing more than a pithouse of fees and more fees.
It is that way because the banks need to turn a profit. Do you think Chase customers like all of the new fees they are imposing? Of course not. But Chase will make more money either by people who pay the fee or people who change the way they bank to bring more money to Chase. That is their goal. It is their only goal.
It isn't just banking. Look at all of the fees airlines are coming up with. They are doing that to make their shareholders money. Period.
It is how corporations work. Their only goal is to make their shareholders as much money as possible. The interests of shareholders and customers are different.
I disagree still. If you don't have customers, then you won't have a profit. Period. People aren't going to pay a fee to use their own money. I know how corporations work, but there's more to it than just making a profit.
Some people have chosen CU's over big banks because they were not tied to the Feds. The feds come in over night and close a bank and sell it off, don't see how they can do that if it is "customer owned"?
Being backed by the fed really means nothing but trouble.
CU's are regulated by the NCUA and is backed by the NCUISF - which is controlled by the Federal Government. And they have come in overnight and closed CU's (or taken them over) where necessary.
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