Bank failures, bank bailouts and the economic crisis are top headlines in the news every day. We assure the members of Discovery Federal Credit Union that your accounts are safe and insured. We've been serving the families and residents of Berks County for 50 years and we will continue to serve you for years to come.
Recent news of the National Credit Union Association (NCUA) Corporate Stabilization Program has raised a few questions regarding the safety and soundness of the credit union system, so we have provided answers to some of the most common questions regarding the program, in addition to providing more detailed information regarding the program that can be accessed by clicking the links below:
Is my credit union safe?
Yes, Discovery Federal Credit Union is well capitalized and financially sound. In fact, the Wall Street Journal on January 29, 2009 stated that credit unions are considered to be among the most conservatively managed financial institutions.
Is my credit union account safe?
Your Discovery accounts are safe and insured. Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government.
Is Discovery still lending to members?
Yes, Discovery continues to serve members with low-rate loans.
In brief, what is the NCUA Corporate Stabilization Program?
On January 28, 2009, the National Credit Union Administration Board approved a series of actions designed to enhance and support a corporate credit union system facing unprecedented strains on liquidity and capital due to extraordinary market disruptions and the current economic climate. Corporate credit unions provide investment and liquidity services to consumer-owned natural person credit unions. Through these actions, natural person credit union members are provided important safeguards by drawing upon the significant aggregate levels of capital already within the credit union system. NCUA is acting to add stability to and strengthen corporate credit unions utilizing a three-pronged approach designed to: 1. maintain liquidity, 2. strengthen capital and 3. restructure the corporate system.
Is this part of the Government Bailout?
No. Taxpayer dollars are NOT being used in this action.
What is a 'corporate credit union' and a 'natural person credit union'?
Discovery federal credit union - where you make deposits and have loans - is a natural person credit union, meaning people belong to the credit union. Corporate credit unions are part of the credit union system and they provide investments and other services to credit unions.
If a corporate credit union is having a problem, will my credit union account be safe?
Yes. Your deposits are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government.
For additional information regarding the NCUA Corporate Stabilization program, please visit www.ncua.gov
FEDERALLY INSURED BY THE NCUA. Your savings federally insured to at least $100,000 and backed by the full faith and credit of the United States Government by the National Credit Union Association, a US Government Agency.
Discovery Federal Credit Union is an Equal Opportunity Lender. Discovery Federal Credit Union is an Equal Housing Lender.
