dumb question - bank vs credit unions

[LordSnailz]

I'm not sure I understand the difference between keeping your money in either a bank or credit union. I understand you're suppose to split it up so that you're under the amt. that is FDIC insured, 100k.

Is there a reason not to put 50k in bank1, another 50k in bank2, etc? Should some money be put in banks and some other in credit unions?

 

[spidey07]

NCUA insures credit unions, not fdic.

 

[vi edit]

Either way you are backed. FDIC at a bank or NCUA from a credit union.

I'd go with the one that offers the best interest rates and the most convenience to you.

EDIT: Just be sure to check on what you are saving in. Some accounts are money market mutual funds that *ARE NOT* FDIC insured.

 

[AccruedExpenditure]

There is no real reason to keep 200k in a savings account unless you need immediate liquidity or have 3 to 4 times as much in other current assets.

50k Savings bank
150k Muni/Government Bonds or other 'safe' investment vehicles if you're worried about investing in current market

 

[LordSnailz]

Well, there are times when you need the liquidity to say put a down payment on a house.
So there are no differences, one riskier than the other, or less prudent between the two scenarios?

scenario 1: money spread out between multiple banks
scenario 2: money spread out between banks and credit unions.

I ask cause you hear banks going bankrupt but you don't hear the same with credit unions. This might be moot since you'll be insured either way?

 

[BlahBlahYouToo]

unless you need this much money (buying a house and they need to verify monthly avg balance), there are better places to "store" the money.

 

[ponyo]

Originally posted by: BlahBlahYouToo
unless you need this much money (buying a house and they need to verify monthly avg balance), there are better places to "store" the money.

like?

 

[compman25]

Originally posted by: Naustica

Originally posted by: BlahBlahYouToo
unless you need this much money (buying a house and they need to verify monthly avg balance), there are better places to "store" the money.

like?

Duh, your mattress. Shoe box in the closet. Buried in your yard.