Can You Trust Your Financial Institution?

Having trust in your financial institution is more important than ever these days. Knowing that you are doing business with a truly reputable bank that has your best interest in mind can ease some worries and uncertainties, and help you feel confident in knowing your money is safe and secure.  

Here are a few things that you can easily access and review to be sure your financial institution is trustworthy and the right one for you.    

Insured  

Whether you are banking at a traditional “brick and mortar” branch or if you’ve chosen an online institution, it’s important to be sure your money will be safe and secure. To do that, you’ll need to check to see if your bank is insured by the Federal Deposit Insurance Corporation (FDIC) or if using a credit union, the National Credit Union Administration (NCUA).   

Deposits held at FDIC or NCUA backed banks and credit unions are covered up to $250,000 per depositor, per insured financial institution, for each account ownership category. In the event the bank or credit union fails, the FDIC or NCUA would act as a safety net and replace all insured money.  

To see if a banking institution is insured you can check the FDIC’s BankFind database. It will allow you to search records, gather information and verify deposit insurance coverage. You can also contact the FDIC directly at 1-877-275-3342.  

Credit unions are a little different and are insured based upon whether they are federally, or state chartered. NCUA regulates and insures federal credit unions while state-chartered credit unions are regulated by the state in which their main office is located and may be insured privately instead of by the NCUA. You can research insured credit unions using the NCUA’s find a credit union online tool.   

You can also verify the amount of coverage you have based upon your account balances and categories by using the FDIC’s deposit coverage calculator or the NCUA’s share insurance estimator online.   

Secure  

More of us are turning to cashless transactions at rates faster than ever before. The increase in the number of digital transactions has also resulted in financial institutions being the target of cyberattacks at much higher rates than other industries. This fact alone makes ensuring your institution is working diligently to prevent attacks and protect your personal information a must when choosing a financial institution.   

It's important that the institution offers, at a minimum, online security and fraud protection, two-factor authentication which requires an additional step to verify your identity, and that they encrypt transactions. These basic protections can help to prevent your data being accessed by a hacker. 

Taking it a step further, in addition to knowing how the financial institution is stopping criminals and protecting your data, you’ll also want to know how they will be using your data, so take a look at their privacy policy as well.  

Consumer First Approach  

Having a consumer first approach means the institution recognizes that the needs of their clients or members come first and are at the center of their decision making, instead of only considering their own bottom line. An institution with a customer first approach works to understand their customers’ needs and tries to cater to them through their products and services, while also giving choices so clients can choose what best works for them and their lifestyle.  

Look for customer service reviews to gauge how others feel about their experiences and if their services are truly useful and customer friendly. Consider those reviews along with other convenience factors like how easily you will be able to access your money, what fees are charged, interest rates offered, and the functionality of their online banking to determine if it’s the right fit for you.  

Mission & Values 

Other than products and services, ask yourself what values, principles or standards are important to you. To truly trust your financial institution, their mission and values will need to align with yours.  

Review their mission statement, the causes they support, their corporate initiatives, and how they are investing to determine if they are in line with your values. For example, you may find that you would be more willing to trust an institution that is environmentally friendly, and promotes local development, more than one that invests in predatory lending or hazardous materials.  

In the end, your financial institution is your partner, and you should be happy with the relationship. Considering all the above will help you find one that meets your needs, suits your lifestyle, and corresponds with the values that are most important to you.  

Veteran Saves also wants to be your partner! Take the Veteran Saves Pledge today and we’ll stick with you on your savings journey. Along the way, we’ll send you emails and texts full of tips and resources to keep you motivated and on the right path!