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How safe are credit unions, and is there a rating scale that can be used to select a financial institution?

Last Updated: February 03, 2012

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There is no widely distributed published rating scale of financial institutions for consumers, although financial publications sometimes provide rankings for various financial products and services. However, people can develop their own ratings based on their personal criteria for a financial institution such as account fees, minimum balance requirements, proximity to home, online services, etc.

The Federal Deposit Insurance Corporation (FDIC) guarantees that bank deposits up to a specified limit are safe. The National Credit Union Administration (NCUA) provides similar insurance for deposits in federally insured credit unions. The standard maximum NCUA insurance amount is limit on credit union accounts is $250,000. In summary, as long as your deposits stay below the maximum amounts that are covered, your money is safe in a bank or credit union. Be careful about making deposits larger than $250,000.

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