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State Senate bill allows credit unions to accept deposits from cities and such up to insurance limit of $250,000

Post by C.R. Roberts / The News Tribune on Feb. 28, 2012 at 12:20 pm with No Comments »
February 28, 2012 12:20 pm

Cities of Washington, now’s your chance to support your local credit union like never before. Counties, towns, school districts, fire districts and other such public entities, same deal.

The Legislature on Monday passed Senate Bill 5913 allowing credit unions in the state to accept deposits of up to $250,000 from municipalities and other such public groups.

“It increases the ability of all credit unions to accept public funds in the state,” said David Bennett, spokesman for the Northwest Credit Union Association, on Tuesday.

Association President Troy Stang said he expects the amount of deposits flowing to credit unions – deposits that previously have been given to banks – will increase.

And credit unions will likely be seeking out that business, he said. “We do expect local credit unions – in Spokane, in Tacoma, in Seattle, in Auburn – if they have an interest in deposits, I will bet that their business development people will be out pounding the pavement.”

The issue, Stang said, “is about consumer choice. It’s a marketplace issue. This is about investing in safe and sound institutions that are federally insured.”

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