With national and local banks in the news -- their stock prices plummeting under housing market crisis and sluggish economy -- you may be wondering about the safety of your credit union accounts and the soundness of STCU's assets.
STCU and most other credit unions have steered clear of the subprime mortgage mess by lending responsibly and holding more of our mortgage loans in our portfolios instead of selling them on the secondary market to beleaguered Fannie Mae and Freddie Mac.
In addition, your STCU accounts are backed by the full faith and credit of the U.S. Treasury. Not one penny of insured savings has ever been lost by a member of any federally insured credit union.
Here are more answers to important questions you may have about your money at STCU.
Q: How is STCU doing financially?
A: STCU, with more than $1 billion in assets, has remained relatively immune to the epidemic of bad loans reported by the media. Why? STCU doesn't gamble with your money. We're a not-for-profit cooperative of members who pool their savings to make loans to other members at a reasonable rate of return. When the real estate market started heating up, STCU stayed the course, continuing its responsible lending practices, asking borrowers to demonstrate that they could repay their loans over time.
Q: What about adjustable rate mortgages?
A: ARMs are great for some homeowners who manage their money prudently, but it doesn't make sense for many STCU members when our fixed rates are available with no prepayment penalties. Learn more.
Q. What about subprime mortgages?
A. STCU avoids them, so subprime mortgages have not been a problem for us.
Q. Are my STCU accounts safe?
A. Yes! STCU share accounts (deposits) are insured by the National Credit Union Share Insurance Fund, which is managed by the National Credit Union Administration and backed by the U.S. government. Here are some common examples of insurance coverage:
STCU is a safe harbor for consumer savings
Consumers saved more than $10.9 billion last year by using credit unions rather than banks. The savings come in the form of lower fees, higher savings rates, and lower loan rates. Today, more and more people seeking to put their money in a stable source offering good rates are turning to STCU.
To learn more about the financial strength of STCU, read our 2007 annual report.
