<p>Most, if not all, credit unions are not federally insured. I lived in Rhode Island when 80% of the population banked at state-insured credit unions instead of banks. One credit union defaulted – and the whole system went bankrupt overnight. All the credit unions, even the solvent ones, closed overnight. It was like living in the Great Depression, with people being turned away in grocery store lines because their checks could not be honored. Eventually got their money back at, IIRC, a 60% rate. I firmly believe that a credit union should never be anyone’s primary access to cash.</p>