We’ve been closely monitoring recent media coverage and social media chatter around calls to eliminate the Federal Deposit Insurance Corporation (FDIC), particularly involving public comments by Elon Musk and President-elect Donald Trump advisors. Unfortunately, this narrative has gained traction and is causing concerns among some consumers, including a few members of credit unions who believe their money will no longer be protected and have expressed plans to withdraw their funds due to this misconception.
Naturally, these narratives can create uncertainty within the financial services industry. Now is the time to reassure your members that they’ve made a strong choice by being part of the not-for-profit, cooperative Credit Union Movement. It’s important to educate them on the differences between credit unions and banks and the FDIC and National Credit Union Administration (NCUA). We can use this opportunity to help members understand how the credit union structure prioritizes their financial security and remains accountable to them—not external investors or stockholders.
Unlike banks, which are owned by stockholders and driven by profit, credit unions are member-owned, not-for-profit cooperatives. This structure ensures that our decisions are always made in the best interests of our members.
During times of uncertainty, credit unions remain strong because they operate with a focus on stability, security, and responsible financial practices—not risk-driven motives.
We are providing these updated messaging resources to address current concerns and will continue to enhance this toolkit as the situation develops. Please use these resources to proactively communicate with your members and provide reassurance during this time.
Key Messaging for Member Communications
Key messages to share with your members:
- Your Funds Are Safe:
- We understand recent media coverage and social media discussions may be causing concern, but rest assured, your funds at [Credit Union Name] Credit Union are safe and secure. Credit union deposits are not regulated by the FDIC; they are federally insured by the NCUA up to $250,000 per account.
- The safety of members’ deposits remains a top priority. Funds are federally insured by the National Credit Union Administration (NCUA).
- FDIC and Credit Union Insurance Are Separate: The FDIC insures deposits in banks, while credit unions like ours are covered by the NCUA. The NCUA provides the same level of protection for your deposits, ensuring that your money remains secure.
- Why Credit Unions Are Safe: Credit unions are fundamentally different from banks. We are not-for-profit cooperatives, meaning our priority is you, the member. We maintain conservative financial practices and meet or exceed all regulatory requirements to ensure safety and soundness.
- Strong and Stable Operations:
- [Credit Union Name] Credit Union is well-capitalized and well-positioned to serve your financial needs. Whether it’s saving for the future or borrowing for life’s milestones, you can rely on us to safeguard your hard-earned money.
- Credit unions remain strong and stable thanks to our commitment to responsible financial practices and our focus on member well-being over profit.
- Addressing Misconceptions: Despite recent social media chatter, there is no credible plan to eliminate deposit insurance protections. Both the NCUA for credit unions and FDIC for banks remain robust systems in place to protect consumers like you.
Member Facing Talking-Points
- Credit Unions and FDIC Are Not the Same: We understand there is confusion surrounding the FDIC due to recent social media chatter. The FDIC insures bank deposits, but credit union deposits like yours are federally insured by the NCUA. Your deposits are protected up to $250,000 per individual depositor.
- Your Money Is Safe Here: The NCUA’s National Credit Union Share Insurance Fund (NCUSIF) is a robust and proven system of protection. No credit union member has ever lost a penny of insured savings held in a federally insured credit union.
- What Makes Credit Unions Different: Credit unions like [Credit Union Name] are not-for-profit financial cooperatives. We are owned by you, the members, and exist solely to serve your financial needs—not the interests of stockholders. This structure makes us inherently member-focused, accountable, and stable.
- We Meet Strong Regulatory Standards: Credit unions are subject to rigorous oversight and capital requirements. [Credit Union Name] is well-capitalized and meets or exceeds all regulatory standards to ensure your deposits are safe and secure.
- Focus on You and the Community: We take local deposits and make local loans to support you, your family, and your community. Decisions about products and services are made with your best interests in mind, and our board of directors consists of members just like you.
- We Are Here to Help: If you have concerns or questions about deposit insurance or your account, please contact us at [Insert Contact Link or Number]. We are committed to your financial security and peace of mind.
- Spread the Facts: If you have friends or family who are worried about these misconceptions, reassure them that credit unions remain a safe, reliable, and member-focused choice for their financial needs. We would be happy to welcome them to [Credit Union Name].
And remember, we are here to serve you. If you find yourself in a financial emergency, please reach out so we can work toward a solution together.
Share Insurance Fund
GoWest member credit unions may access the Infosight resource on the GoWest Compliance website.
This page has valuable information about how the insurance program works. The Account Insurance Estimator allows your credit union to estimate the maximum federal insurance coverage of funds in any member’s account, for the ten most popular types of coverage. Sharing a customized estimate and estimate form with your members could reinforce your credit union’s value to them.
This League InfoSight tool is available to GoWest member credit unions. Free webinars are being offered on March 21 and March 22. Learn more here.
FAQs
- What is a government shutdown, and how might it affect me as a credit union member?
A government shutdown occurs when Congress fails to pass funding legislation that authorizes the resources needed to maintain specific or broad government programs. This can result in furloughed federal employees, delayed government contracts, and ripple effects on the economy. If you are directly affected, your credit union is here to support you with financial solutions and guidance. - Are my funds at risk during a government shutdown?
No, your funds are safe and federally insured by the National Credit Union Administration (NCUA) up to $250,000 per individual depositor. - I’m a federal employee/contractor and won’t receive my paycheck. What help can my credit union provide?
Many credit unions offer programs for affected members, including:
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- Emergency loans with low or no interest.
- Payment deferral options for existing loans.
- Waivers for fees such as overdraft or late payment penalties.
Please contact us directly to learn about the specific options available to you.
- How will the government shutdown impact my credit union’s operations?
Credit unions remain stable and operational during a government shutdown. We are member-owned, not-for-profit institutions that prioritize your financial well-being. Our services and support systems will continue uninterrupted. - Will the shutdown impact my ability to access government-related financial services (e.g., tax refunds, federal loans)?
Certain government processes, like IRS operations or federal loan disbursements, may be delayed. If you’re affected, your credit union can help you explore temporary financial solutions to bridge the gap. - If the government can’t fund itself, what happens to the NCUA insurance?
The National Credit Union Share Insurance Fund (NCUSIF) is fully funded and independent of the federal budget process. This means that your deposits remain insured and protected, regardless of a government shutdown. - How long will this shutdown last?
While we don’t know exactly how long this will last, be assured credit unions are built to withstand economic fluctuations, including government shutdowns. Credit unions have experience navigating economic disruptions and are well-positioned to adapt and support members for the long term. Credit Unions have strong capital reserves and operate under conservative, member-focused lending practices. Additionally, the not-for-profit structure allows credit unions to prioritize stability over profits, ensuring they remain a safe and reliable financial partner. - What is the maximum federal insurance coverage?
This page has valuable information about how the insurance program works. The Account Insurance Estimator allows your credit union to estimate the maximum federal insurance coverage of funds in any member’s account, for the ten most popular types of coverage. Sharing a customized estimate and estimate form with your members could reinforce your credit union’s value to them.