Statement about recent events in the banking industry 03/13/2023
Because of recent events in the banking industry and the resulting fallout, we are reaching out to our members to share information and, most importantly, to assure you that your deposits with Direct Federal Credit Union are safe.
Credit unions are among the most well-capitalized financial institutions, maintaining equity reserves and investments that prioritize needed safety and soundness for their members. Direct Federal is no exception to this. Our conservative balance sheet management and strong capital position of 11.5% (7% is considered well-capitalized in the industry) make us significantly different from financial institutions in the news.
Federally insured credit unions, like Direct Federal, offer a safe place for credit union members because all deposits are protected by the National Credit Union Share Insurance Fund for up to $250,000 per individual depositor. Credit union members have never lost a penny of insured savings at a federally insured credit union; the industry’s deposit insurance fund has the backing of the full faith and credit of the U.S. government. See MyCreditUnion.gov for more information. For depositors with funds above $250,000, options to fully insure balances include restructuring your deposits into different ownership groups (such as joint, individual, or retirement) to qualify for additional insurance.
Direct Federal is in business for the 70th year, and we know that we have only been able to carry out our mission for so long because of the trust of our members. We want you to remain confident that your deposits with Direct Federal are safe. Thank you for choosing Direct as your trusted financial partner.