Free Articles  >>  Business And Finance >>  Page 2662  >> 

How credit Unions Guarantee member savings

How Credit Unions Guarantee Member Savings
More and more, people are turning to financial institutions to alleviate the effects of the current financial crisis in their lives. One such institution is the credit union. A credit union is a financial institution formed through a cooperative, with the members functioning both as owners and controllers. Credit unions are formed with the objectives of providing financial services such as better savings, lower-interest loans and other similar benefits, to members. The board members of the credit unions are elected via single votes, no matter how much each member has invested.

Assets and earnings of credit unions vary world-wide from the relatively small funds of a local community credit union managed by volunteers, to institutions with billions of dollars and members numbering hundreds of thousands. Earnings are distributed as dividends to members. This dividend together with the benefits of reduced credit rates, higher interest rates on savings and other financial services make credit union memberships viable options to ever rising banking fees. How then do credit unions guarantee member savings? It turns out that there are several safeguards in place that secure each members investments.

One such safeguard is provided by the government. Although credit unions are not insured by the Federal Insurance Deposit Corporation (FDIC), the insurance institute that safeguards regular bank accounts, credit unions do offer insurance for member accounts. The National Credit Union Association (NCUA) supervises and regulates the credit unions while the insurance is provided either by the National Credit Union Share Insurance Fund (NCUISF) or by private insurance firms like the American Share Insurance (ASI).

Since 1974, American Share Insurance has been providing insurance of the savings of credit union members. It provides insurance of up to $250,000 per account of the member regardless of how many accounts the member has. ASI services only credit unions, being owned by credit unions themselves and not by investors out for profit. It provides both primary and excess of share insurance to the credit union members.

Primary share insurance is provided by the government since the 1970s, when then President Richard M. Nixon signed the law creating the NUCA and, soon after, the NCUISF. With the passage of The Helping Families Save Their Homes Act of 2009, the insurance protection of credit union deposit accounts was raised to $250,000. Specifically, the NUCA offers protection for credit union services like share savings accounts, checking accounts, Certificates of Deposit accounts and money market accounts. For primary share savings accounts where amounts exceed $250,000, private insurance firms can offer excess share insurance or ESI for an additional of up to $250,000. Only non-deposit investments are not normally covered by this, examples of which are common shares, mutual funds, etc.

Credit union insurance covers a lot more that what banks provide for its members with the help of both government regulations and private insurers. With these controls in place instead of the FDIC for banks, members get even more protection as well as benefits than bank depositors do. This makes it a lot easier for members of credit unions to make use of the various financial services of credit unions.
About Author Kim Valerio :

For more info you can visit <a href="" target="_blank">Eastern Idaho Credit Union</a>.

Article Source:
Article Url:

Article Added on Wednesday, March 3, 2010
Other Articles by Kim Valerio

The PPC Coach Program A Short Overview
If you're thinking of getting into pay per click promotion and do not have an idea how or where to begin - there is one program for you: the PPC Coach program. PPC Coach is a subscription and membership website where each member is given the necessary tools and training in the exciting world of pay per click marketing. Yes, this membership site will help you make money online. With your membership payment of $50 monthly, you are given access to a monthly PPC technique (tried and tested...

Bonding With Your Family
The fun that you can bring your family will always be treasured. There are available activity which you can spend time with the whole family. Adventure places are now offering a complete package for the family to enjoy while on vacation. They have a lot of activities available that all ages can participate. These will really build good relationship to each member of the family. With this attitude you are already building your strong relation with them while enjoying. There are also different...

Heavy equipment leasing Businessman great option
Making money is the top reasons for business now a days, thats why having your heavy equipment at lease is a great asset. Rather than let your equipments go in traditional loan, leasing lets you have a continual money income in your piggy bank. Most of the traditional loan usually requires 25% as down payment or would even be greater than that. While if you desire to lease your equipment it is often done with less payment or even without payment at all. Imagine having all the money in your...

Indian Remy Hair How Important to Spend Money Buying the Best Product
With the kind of lifestyle that many personalities are adapting today, it is important for them to modify their looks regularly. Meaning, they need to improve not just their facial appearance but their hairstyles as well. This is the reason why even most average women now are trying to imitate these popular personalities. Because of the desire of many women today to follow the latest hairstyle trends, they never stop from discovering new options and methods to help them improve their hair....

Tips on How to Use Favorable Real Estate Investing Plans
Due to the continuing downfall of the worldwide economy that involves the recession, the industry of real estate is experiencing the hardships. Lately, the value of real estate continues to decline. Houses that worth millions before are now available for sale through six-digit deals only. With the changes that occur since lifting the recession, how important is to consider real estate investing plan. Today, the real estate market is beginning to recuperate slowly. Still, due to the...

Publishers / Webmasters
Article ID: 220646
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:

126 Users Online !
Related Articles:
Latest Articles:
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts

Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of and/or its owners.

Copyright AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Email Marketing In India Provided By AwareIndia

Company IDS