Are Credit Unions Safe? What they ACTUALLY do with your money...

With several large U.S. banks failing in the past few weeks, you might be getting worried about your Credit Union too.

In this video, we'll cover the details of how credit unions handle your deposits, how NCUA insurance works when a Credit Union collapses, and what would happen if your Credit Union goes out of business.

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What is Roadmap Money?
I’m Jacob Wade, the Founder of Roadmap Money! I am a husband, father, and former full-time RVer!

By budgeting and investing wisely, we have:

- Lived on $14 an hour and STILL saved money
- Enabled my wife to be a Stay At Home Mom
- Paid off over $40,000 in debt
- Grown our net worth from negative to over 6 figures
- Quit my six-figure job and travel the country for over two years!

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00:00 Intro
00:43 What do Credit Unions do with deposits?
02:45 Credit Union balance sheet
06:09 NCUA Insurance Explained
07:33 What if your Credit Union collapses?
10:06 Recent Credit Union closures
13:26 Are you protected?
14:52 Outro

[rethinkrich]

One additional point to make is that the NCUA is funded by the SIF (Share Insurance Fund) and they also only cover less than 10% of deposits. Bottom line, when the rubber hits the road, their insurance can’t cover everyone.

[skittles]

Honestly, this video is REALLY good. You provided real examples, and important information. You dont have enough views in my opinion! People need to know this stuff!!!

[themagoofiles]

Total assets include all assets, including building, desks, chairs, computers, goodwill, Equity and so on.
You need to look for a liability account called payable to customers or something like that and then do your math of cash / payable to clients.

I found the same doc you have for 2022 Q4. Below the asset section is the liabilities.
Total shares and deposits were 1.85T.
130.3B cash / 1.85T deposit = 7.04%.
Slightly better. But again, fractional reserve.

[heartbrokenamerican]

The banking system sounds like one big ponzi scheme

[Tomh]

To get an auto loan at a credit union you have to have good credit. If you have bad credit you get the auto loan at a much higher rate of interest at the car dealer. Auto loans and mortgages are low risk at credit unions because you have to have a good credit rating.

[CatsAreNiceMeow]

Great video! Very informative! What if the Federal Reserve/government does not have the money and fiat money becomes obsolete? Do we lose everything even under 250k?

[vietnamemperor]

Nothing is perfect and nothing is 100% safe only one is less riskier than the other. The number of fail credit unions are much less compare to the number of failing banks.

[desiexpat]

Lot of useful info. Very helpful to know about the investment ratios.

[mikeh]

If a Credit Union fails and I do have loan payments with it, who EXACTLY am I going to make payments to? That wasn't mad clear!

One union I used to be with did go under due to embezzlement.

[turn-n-burn]

Crazy question, but of course banks are insured as are credit unions, by the federal government, but what about when the fed collapses?

[blackberry]

So is there anything thing like bank bail ins with Credit Unions ? If not that would be a major major plus.

[poetmaggie]

Considering who is holding the insurance I don't think the money is all that safe. But this makes me feel comfortable about my accounts. I will never use a "Bank" again.

[carolbryon]

I have never banked with a credit union b4 in my lifetime. Im a little hesitant and not totally convinced that credit unions r the best with so many large and small banks r being closed 4 good by fdic. One of my larger banks is close 2 going out of business or most branches across this country will b closing. I dont have a car and need more info on credit unions and if ncua is just as good as fdic when more us and foreign banks r closing. I have the direct fdic phone # 2 call on more uptodate statuses on us banks right now. I will research the ncua's phone or website 4 the same reason. I think we will b heading towards a depression, just like the one in 1930's within the next 5 to 7 yrs from now if the govt b doesnt do some realistic answers and problem solving 4 all of us americans.

[roycox]

what is the poisability of the insurance copany faikure?

[dq]

Summary:
assurance of you being paid back is dependent on the insurance

[jackbinfet]

Also important to note: banks like SVB typically buy much riskier investments than credit unions, which have "investments" in things like CDs that are fully guaranteed. So even less risk.

[omtatsatnamaste]

Banks have trillions in risky derivatives which makes them much more risky than credit unions. Thats is safe as going to vegas.

[garybulwinkle]

I think auto loans are very risky! Autos are so over priced!!! They depreciate so fast because the high initial cost is the bloated union labor used in their construction; there is relatively little value in what's left after the labor!!! Then the longevity of the materials is shortening over time (plastic) giving us a poor investment if you can even call it that!!!! I would rather have them invest in Real Estate! I myself, have never purchased a new car or truck! I work on vehicles and can therefore save money by working on my own stuff, and as such, can see the quality of the stuff being made today! It's hilarious, the amount of money they want today!!!!

[KathleenDenby]

Really you would b better if u take your money out as soon as it goes in the banks screw u up

[EverythingisaGodamnLie]

A true credit union shouldn't collapse. I've been on this earth 55 years and have only known of 1 true credit union, most are really banks.