 Are
my deposits safe at my credit union?
|
 Dear
Dr. Don,
Please advise. I have well over $100,000 in my
IRA. It is all invested in CDs at my hometown credit union. The
credit union carries a 5-star rating and has been in business for
over 40 years. I feel safe, but I'd value your opinion.
-- Steve Savings
 Dear
Steve,
I try to get compensated when I take on additional risk. You should,
too. If your deposits are insured by the National Credit Union Share
Insurance Fund, the limit to that insurance is $100,000.
The NCUSIF
maintains an insurance
estimator on its Web site that will help you determine the insurance coverage
on your share accounts. Your letter indicates that you're over the $100,000 limit
in your IRA account, so it's clear that you're over the limit for the deposit
insurance. Your credit union may be well established and well
capitalized, but you're still taking on the risk that things go wrong. My recommendation
is for you to diversify your IRA investments across financial institutions. |
