Posts Tagged 'market'

Seattle newspaper: Credit unions put members first

The Seattle Post-Intelligencer says there is one important lesson to be learned from the financial weirdness going on:

Despite the interrelated nature of the finance sector, credit unions are a safe and stable place to put our money. We ignore at our peril the lesson of the recent relative stability of credit unions…It is not just the fact that credit unions have better rates and didn’t indulge in precarious behavior. In credit unions [members], not investors, are sovereign.

Eric Bowman writes that the “financialization” of our economy – where money is made by moving funds around, not by producing anything of worth – is partly to blame for the housing, credit, and stock market mess. When banks strive for profit and not service, they make risky decisions.

Bowman argues that, by focusing on service, credit unions stay healthy for the long-haul.


NCUA increases Federal Insurance Protection for your account



Good news – credit unions were included in Economic Stabilization Act (H.R. 1424), which increases the insurance coverage for your deposited funds, from $100,000 to $250,000, until December 2009.

This means all the money you have at American 1 is covered up to $250,000 should something happen. With the recent bank failures, the idea is to put everyone’s fears at rest.

As the National Credit Union Administration (NCUA) puts it, members of federally-insured credit unions have never lost a penny of their money.

The new $250k cap is true for FDIC-insured banks, too.

If you have any questions about this stuff, be sure to ask someone at our branch offices.


Best way to bank? Don’t take our word for it.



We like to point out that, even in times of financial stress, credit unions like American 1 are a steady way to do your banking. Financially, we’re in great shape, and we continue to do all the great things we’ve always done – like this weekend’s Women’s Expo.

But don’t take our word for it.

Productivity blog Lifehacker helps sing the praises of credit unions, offering us not-for-profit financial institutions as a barrier to the weirdness out there.

“With major instability in banking and unprecedented failures and buy-outs, it may feel like the only safe place to put your money is under your pillow,” Lifehacker editor Gina Trapani writes. “While even through buy-outs like Washington Mutual’s, your money remains FDIC-insured, this is a good time to consider an alternative to for-profit private banks—like credit unions.”

Thanks Gina! And be sure to check out the comments section of the Lifehacker article for great comments from credit union members.


Your money is safe with us.

Your money is safe at American 1

Lots of news, and worries, surrounding California’s IndyMac Bank’s meltdown.

The Detroit News ran an article addressing concerns here in Michigan, and pointed out that because Michigan is so conservative in its banking outlook, things aren’t as bad as people think.

That’s especially true here, where we’ve been lucky enough to witness growth and success.

As the Detroit News points out, even if credit unions do face trouble, members will be safe:

Even if banking institutions face financial stress, customers’ savings are not in jeopardy.

“People who have deposits under $100,000 need not worry, the FDIC has always paid out their deposits,” said Donald Mann, a private banking consultant and former state banking regulator. The FDIC insures bank deposits.

Credit union deposits are insured by the National Credit Union Administration (NCUA), which is just like the FDIC. You might notice all the NCUA stickers and signs covering our branches; that’s to ensure you that your deposits are safe no matter what happens.

After the IndyMac collapse, people were thinking about withdrawing all their money from their bank or credit union and stuffing it in their mattress. This kind of hysteria is why banks and credit unions fall apart. There’s no need to withdraw all your money and bury it in the back yard: American 1 is doing just fine.

We don’t do mortgages, for one thing. That means we’ve avoided all the pitfalls of “sub prime” and “adjustable rate” mortgages that are grabbing so many headlines lately. By staying out of the mortgage business, we’re less likely to be affected by drastic swings in the marketplace.

So relax. Your money is safe, your loans are safe, and we’re not going anywhere.



American 1 Federal Credit Union