The closures of Silicon Valley Bank (SVB) on March 10 and Signature Bank on March 12 have catapulted the banking industry to the forefront of national news. During these times of uncertainty, it is important for Member-Owners of Notre Dame FCU to understand the differences between their credit union and these banks that have captured such negative press.

The membership at Notre Dame FCU is vastly different from the clientele of either SVB or Signature Bank. These banks specialized in large business accounts, many of which kept vast sums on deposit. As a result of these large deposit concentrations, only about 10 percent of deposits at SVB qualified for deposit insurance through the Federal Deposit Insurance Corporation (FDIC).

When rumors began to spread that the banks might be in trouble, concerned depositors rushed to withdraw their uninsured funds, overwhelming the institutions and forcing federal regulators to intervene. Despite such a large percent of deposits being over the $250,000 insured limit, the Treasury Department made the decision to guarantee all deposits, even those beyond $250,000. This statement by the Treasury Department was made to assure depositors that their monies are safe, regardless of the amount or at what financial institution they are held.

Over 80 percent of deposits at Notre Dame FCU are insured by the National Credit Union Administration (NCUA). This insured deposit ratio not only compares favorably to the 10 percent of insured deposits of SVB, but also against all commercial banks, whose insured deposit ratio is only about 50 percent. 

Member-Owners of Notre Dame FCU can remain confident that their credit union continues to operate following sound financial policies and received consistently high rankings when it comes to safe banking practices. Notre Dame FCU is a safe, reliable place to store your money, and will continue to be for generations to come.

Notre Dame FCU Member-Owners can access the team of Financial Physicians for assistance with any questions by calling 800-522-6611 or visiting NotreDameFCU.com. To learn more about coverage and NCUA insurance, visit NCUA.gov.

Thomas J. Gryp ’79
President/CEO