Banks or Credit Unions

socalgal's avatar - bobblecars3

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.

sully16's avatar - sharan

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

myturn's avatar - 6a00d8341c565553ef0148c6e6e8fe970c 800wi

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.

myturn's avatar - 6a00d8341c565553ef0148c6e6e8fe970c 800wi
Why bank when you can credit union?
I haven't had a bank account for years, but I do have two credit union accounts.
In response to socalgal

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

In response to myturn

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.

savagegoose's avatar - ProfilePho

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

Jack-C's avatar - us
In response to savagegoose

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

Rick G's avatar - avatar 1766.jpg
In response to Jack-C

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.

Jack-C's avatar - us
In response to Rick G

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

Rick G's avatar - avatar 1766.jpg
In response to Jack-C

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

socalgal's avatar - bobblecars3

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.

MADDOG10's avatar - smoke

Credit union , hands down...!

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MADDOG10's avatar - smoke
In response to iGlenn


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

time*treat's avatar - radar
In response to Rick G

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

socalgal's avatar - bobblecars3
In response to MADDOG10

I Agree!  That's what I'm afraid of.  Disapprove

In response to MADDOG10
So I guess you assume that there are no Bernie Madoffs that work at banks or credit unions?  Thieves and crooks are everywhere. 
There is a difference between depositing your assets into a brokerage firm and depositing your assets into a brokerage firm with an "adviser" managing your funds.  Most people self manage their brokerage accounts.  I manage mine online, I buy/sell stocks and bonds with only a few clicks of the mouse just like millions of other Americans.  It's even easier than buying a lottery ticket.

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

myturn's avatar - 6a00d8341c565553ef0148c6e6e8fe970c 800wi

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

Credit Union Locations in the United States.

Fla386's avatar - nw sorc2.jpg

            mason jars LOL  better way to bank

dallascowboyfan's avatar - chi
In response to Stack47

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.......

DEE88's avatar - animal doggy2.jpg
In response to MADDOG10

Green laugh            Green laugh              Green laugh

st.germain's avatar - Tarlor
In response to Fla386

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.

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