Is purchasing a CD thru a credit union safe? I have an account with Vanguard and, have purchased CD’s thru them. The credit union I am looking at offers a 5 year CD at 3.04 APY.
Can a credit union offer FDIC insurance?
Terry Says: No, a credit union doesn’t offer FDIC insurance, but it does offer a separate insurance fund, backed by the Federal government. Here is the description from their website, http://www.ncua.gov/DataApps/Pages/SI-NCUA.aspx:
“The National Credit Union Share Insurance Fund (NCUSIF) is the federal fund created by Congress in 1970 to insure member’s deposits in federally insured credit unions. On July 22, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law and included permanently establishing NCUA’s standard maximum share insurance amount at $250,000. All deposit insurance resources reflect this higher level of coverage. . . . Administered by the National Credit Union Administration, the NCUSIF is backed by the full faith and credit of the U.S. Government”