Large and private bank CDs versus private credit unions.
2006-06-21 12:48:34 · 5 answers · asked by Lucky123s 1 in Business & Finance ➔ Personal Finance
Hummm. I can not tell by the question if you have any concerns about safety and soundness or if you are concerned about the return on the CD.
From a Safety and Soundess standpoint, I like banks. Your deposits are insured by the FDIC. They are heavily regulated and examined by several regulatory agencies in order to prevent them from failing. If they do, your deposits are insured by the FDIC.
Credit Unions have a different scheme. They are free from a lot of the compliance issues, so I consider them less safe. However, many times the Credit Unions offer better rates.
Consider what your goal is and invest accordingly. I personally choose smaller community banks, usually one with assets of less that 500 million dollars.
2006-06-21 14:56:53 · answer #1 · answered by atmjay 3 · 4⤊ 1⤋
As long as you stay within your Canada Deposit Insurance Corporation limits, you are perfectly safe to choose the institution with the highest yield. Credit Unions are typically covered under provincial legislation, but have similar protections. In some provinces, Credit Unions have better protection than CDIC. Alberta, for example, has no limit on the amount covered.
2006-06-21 12:55:46 · answer #2 · answered by discodolly_ca 1 · 0⤊ 0⤋
My credit union IRAs regularly perform better than a banks
2006-06-21 12:50:37 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Credit Unions wiil usually offer the best rates; since thye are member owned and do not have to cater to stock holders. They look out for the little guy.
2006-06-21 12:55:22 · answer #4 · answered by John H 4 · 0⤊ 0⤋
Banks are insured, credit unions may or may not be. Beyond that go for rate.
2006-06-21 12:50:55 · answer #5 · answered by Anonymous · 0⤊ 0⤋