Hi Folks. I searched and couldn't find this topic. I just opened a credit union account.  Do you think it's better to place your winnings in a credit union or a regular bank? I know they're both FDIC insured. Since credit unions are member owned, is there more benefit than a regular bank?

I appreciate any feedback. Thanks!

Google . . fdic maximum . . investing 101 . . morningstar.

I like my credit union, we don't have a bunch of crazy fees.

A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at reasonable rates, and providing other financial services to its members.

Just ask the credit union manager if after a year could you withdraw your "$10 million in winnings" on the same day. Most credit unions and savings and loans will use your money as loans to other members. It might take several days or even weeks before you could withdraw your money. I heard many stories about people who had to wait a week just to withdraw $1000.

Personally, I would open an account with the same bank lottery uses

That's fine if your credit union isn't 40 miles from where you live like mine was. Other banks' ATMs charge fees for using them even if your credit union doesn't. Credit unions have made bad loans too and their size determines the affect on their membership.

isnt fdic only insured on 1st $250k , would need a bank account with every bank in usa to keep all the 81 millwon  recently insured.

then they'll prob close faster than you can open them

Credit unions are not insured by FDIC.  They are insured, but by a different group.

Some are insured by FDIC, others not.  My credit union dropped FDIC and opted for private insurance coverage.  I'm glad they did.  The FDIC is currently unable to guarantee all of the accounts they 'cover'.

Socalgal, my advice is to choose the credit union.  I've had my accounts with one for 8 years and never had a problem withdrawing any amt. of money on demand.  Also, they provide much better service.

OK.  Well, I belong to 3 different credit unions and they are all insured by NCUA.  Thanks for the info, Rick.

Jack, my credit union (Abri, used to be named Argonne) is insured by American Share Insurance.  $250K per acct. 

Thanks for all the reply. My credit union is insured to $250K by NCUSIF (National Credit Union Share Insurance Fund).  There is a little blurb on the notice, but I need to ask in person at the branch.

"For most accounts, the $250,000 in deposit insurance provided by the NCUSIF is sufficient. It may be possible for the few accounts that exceed the $250,000 federal limit to remain fully insured by restructuring them to increase the amount of NCUSIF insurance coverage available."

I guess having several CU accounts is fine. I'll have to ask about the waiting period for withdrawals.  Overall, it does seem like CUs aren't as high risk as regular banks.

I'm always surprised by the answers people give to this question.  I wouldn't deposit my winnings in a bank, I'd deposit it in a brokerage account at either Schwab or Fidelity without an advisor.  SIPC (much like the FDIC) protects brokerage accounts with higher limits.  Both Schwab and Fidelity purchased additional insurance from Lloyds of London and other insurance companies to provide additional coverage for those accounts above the SIPC limits. 

Do you honestly think wealthy people (lets say those worth at least $10 million) have their money sitting in a couple of dozen different banks?  No, they have the majority of their assets with a brokerage company, either with or without an advisor managing their funds.

Credit union , hands down...!

Geez,

    My first thought was that of Bermie Madoff and the brokerage firm...!

Well, yeah. Would you want to keep your money at a place called "Arg!! Gone!!" ??

  That's what I'm afraid of. 

Credit Unions...is my vote BECAUSE they generally pay better interest rates on their money market accounts - than banks do.

A Better Way to Bank? There's a Credit Union for That.

Credit Union Locations in the United States.
 
creditunionsonline.com

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I work at a Credit Union so I am a little bias & yes you can withdraw your money in the same day.....Stack47 those people that had to wait if they deposited a check & didn't have matching funds the CU put's a hold on the check meaning they cannot withdraw the funds till the check clears....... I have never had any problems withdrawing money from the Credit Union. and I have 3.......

I hear a lot of people do not trust banks anymore and are stashing at home...doesn't sound safe...mattresses;behind floorboards etc,etc.  Sounds like the old days.  Personally I have credit union...freindly;efficient;personal service;NCUA and very little stashed at home....and free checking and savings.

I have a friend who found a 100 dollar bill hidden behind a electrical outlet cover plate.