FAQs

• Was Workers Credit Union impacted by the closure of Silicon Valley Bank or Signature Bank in NY?
  • No. Workers was not impacted by the closure of Silicon Valley Bank or Signature Bank. As a member of our credit union, your funds are insured by the National Credit Union Association (NCUA) and the Massachusetts Credit Union Share Insurance Corporation (MSIC). 
• Do I need to do anything?
  • No. Your deposits are fully insured at Workers Credit Union and there is nothing you need to do. We’ve got you.
• How are my funds insured at WCU?
  • Your deposits are fully insured and safe at WCU. Deposits up to $250,000 are insured by NCUA and all amounts above that are insured by MSIC.
• What is the NCUA?
  • The National Credit Union Administration is an independent federal agency that insures deposits at federally insured credit unions, protects the members who own credit unions, and charters and regulates federal credit unions.
• What is the MSIC?
  • Massachusetts Credit Union Share Insurance Corporation serves both state and federal credit unions in Massachusetts and provides deposit protection. It fully insures excess shares and deposits above the federal insurance limit of $250,000 at ALL of its member credit unions.
• Is Workers a safe place for my money?
  • Yes. WCU is one of the highest capitalized financial institutions in the Northeast and we have no uninsured deposits. Workers balance sheet is managed with the highest integrity. The majority of our investments are made in our members and communities.
• What happened with Silicon Valley Bank (SVB)?
  • On Friday March 10th, California based Silicon Valley Bank (SVB) was closed by state regulators and placed into receivership with the Federal Depositors Insurance Corporation (FDIC). SVB didn't have enough funds on-hand, and so it started selling some of its bonds at steep losses, which triggered many large depositors to remove funds from the bank.  Though unsettling, their closure has no impact on Workers Credit Union.
• What happened with Signature Bank in NY?
  • Signature Bank, based in New York, closed on Sunday March 12th by the New York State Department of Financial Services. The bank mainly dealt with real estate lending, as well as cryptocurrency.  Signature was closed for systemic risk similar to SVB and the failure of crypto bank Silvergate last week.
• How is Workers Credit Union's business model different than SVB or Signature Bank?
  • At Workers Credit Union the source of our deposits are our members – the working families, individuals, and small businesses in our area. We invest those deposits making loans to our members and manage our portfolio with the highest level of integrity.
• How is the FDIC, Treasury, and Federal Reserve handling this?
  • They are responding in a manner that fully protects all depositors at SVB and Signature Bank. Depositors will have access to all of their money starting Monday, March 13th, and no losses associated with the resolution will be borne by the taxpayer.
• What is Workers Credit Union's Investment policy?
  • As a not-for-profit credit union, the majority of our assets are invested in loans to our members, unlike a for-profit bank whose purpose is to maximize shareholder returns. That is also why we are able to offer higher deposit rates than traditional banks. Deposits in excess of those currently used for loans are invested according to strict policies designed to minimize financial risk to the credit union and our members.