Check your Financial Institution’s Rating

October 8, 2009

In the past year or so, we’ve all seen several banks and credit unions failing and either closing their doors completely, or being swept up by a larger financial institution.

A good way to check on your financial institution’s well-being, besides looking at annual reports, is to check their rating on Bauer Financial. Bauer has been analyzing and reporting on the financial condition of the nation’s banking industry since 1983. They analyze bank and credit union’s quarterly financial data, and base their ratings (ZERO is the lowest and 5 is the highest) on factors such as liquidity, delinquencies, and net worth.

Before you open a new account with a bank or credit union, it’s always a good idea to check with Bauer first to see what their rating is. If they have a low rating, it’s probably a good idea to look at another financial institution for your money.

And – this is extremely important – always make sure that your funds are 100% insured.

MCCU is proud to continue to receive a 5-star rating from Bauer each month. For more information go to Bauer’s website.

Questions or Comments? E-mail me at blogger@matadorsmoneymatters.com.

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