NCUA: Number of credit unions continues decline, but membership is up - CUInsight (2024)

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NCUA: Number of credit unions continues decline, but membership is up - CUInsight? ›

Although the number of federal credit unions continued to decrease, their membership continued to increase. Federally insured credit unions added four million members compared with a year ago, reaching 139.3 million in the fourth quarter of 2023, according to agency statistics.

Over the past decade, the number of credit unions has declined by 30 percent, but the amount of credit union assets has more than doubled, from $1.02 trillion to $2.17 trillion.

Originally, membership in a credit union was limited to people who shared a common bond. They may have worked in the same industry or for the same company. Or they may have lived in the same community. However, credit unions have loosened the restrictions on membership and often allow the general public to join.

bank in a recession, the credit union is likely to fare a little better. Both can be hit hard by tough economic conditions, but credit unions were statistically less likely to fail during the Great Recession. But no matter which you go with, you shouldn't worry about losing money.

Limited accessibility. Credit unions tend to have fewer branches than traditional banks. A credit union may not be close to where you live or work, which could be a problem unless your credit union is part of a shared branch network and/or a large ATM network such as Allpoint or MoneyPass.

The share of U.S. workers who belong to a union has fallen since 1983, when 20.1% of American workers were union members. In 2023, 10.0% of U.S. workers were in a union. Views about the decline in union membership have changed only modestly since last year, when 58% said it was bad for the country.

The largest credit union in the U.S. is Navy Federal Credit Union, with $156.65 billion in assets. As of 2022, the U.S. credit union industry has a market size of $103.3 billion.

1. Navy Federal Credit Union. Navy Federal is the largest credit union in the country. It has more than 300 branches (which rivals one or two of the biggest banks in the U.S.), mainly in the Northeast, and more than 12 million members, totaling $144 billion in deposits.

Which is safer, FDIC or NCUA? ›

One of the only differences between NCUA and FDIC coverage is that the FDIC will also insure cashier's checks and money orders. Otherwise, banks and credit unions are equally protected, and your deposit accounts are safe with either option.

The FDIC and National Credit Union Administration (NCUA) oversee banks and credit unions, respectively. These federal agencies also provide deposit insurance. When a financial institution is federally insured, money deposited into a bank account will be secure even if the financial institution shuts down.

First, bankers believe it is unfair that credit unions are exempt from federal taxation while the taxes that banks pay represent a significant fraction of their earnings—33 percent last year. Second, bankers believe that credit unions have been allowed to expand far beyond their original purpose.

Credit unions are insured by the National Credit Union Administration (NCUA). Just like the FDIC insures up to $250,000 for individuals' accounts of a bank, the NCUA insures up to $250,000 for individuals' accounts of a credit union. Beyond that amount, the bank or credit union takes an uninsured risk.

Credit unions are generally considered to be safer than banks during economic downturns due to their conservative approach to risk and their emphasis on financial robustness.

Just like banks, credit unions are federally insured; however, credit unions are not insured by the Federal Deposit Insurance Corporation (FDIC). Instead, the National Credit Union Administration (NCUA) is the federal insurer of credit unions, making them just as safe as traditional banks.

Some have argued that credit unions are inherently inefficient because of their one-member, one-vote governance structure.