Banks and credit unions: The Lowdown on Insurance

Yo, let me break it down for you about banks and credit unions, and how they keep your money safe. Factz.

The Lowdown on Insurance

Banks and credit unions both got that federal insurance to protect your paper, but they roll different:

- Banks are backed by the FDIC (Federal Deposit Insurance Corporation)

- Credit unions got the NCUA (National Credit Union Administration) lookin' out for them[

Both these agencies insure your deposits up to $250,000 per account. So whether you're with a bank or credit union, your money's protected up to that amount if the institution goes belly up.

## Credit Unions vs Banks

Now peep the differences:

- Banks got customers, credit unions got members

- To join a credit union, you gotta meet their membership criteria

- Credit unions are nonprofit, while banks are in it for the profit

- Credit unions might hook you up with better rates on loans and savings accounts

## The Safety Net

Both types of institutions are regulated to keep your money safe:

- The NCUA supervises and regulates federal credit unions

- They also manage the National Credit Union Share Insurance Fund (NCUSIF)

- If a credit union fails, NCUA steps in to handle business and get your money back to you, usually within 5 business days

## What's Not Covered

Just so you know, neither FDIC nor NCUA insure:

- Stocks

- Bonds

- Mutual funds

- Life insurance policies

- Annuities

So keep that in mind when you're diversifying your portfolio.

Remember, whether you're rollin' with a bank or a credit union, your deposits are protected up to $250,000. It's all about what fits your financial style and needs. Stay smart with your paper, and you'll be straight.