SAN FRANCISCO–The future of bank regulation and where money is safest has become a popular subject on TikTok, and credit unions are a part of the conversation—even if some of the advice being shared isn’t always grounded in facts.  

As Salon.com noted in its review of what’s being shared, TikTok creator Zach Herberholz recommended in a recent post, “Take all of your money out of your bank account and put it in a credit union. With the dissolution of the FDIC, your money may not be as safe as you think it is.”

While there has been some discussion in the Trump administration around consolidating regulators—ironically, including the folding of the NCUSIF into the FDIC—there has been no serious discussion to date, as far as is known, of dissolving the bank regulator or its insurance deposit fund. 

Herberholz goes on to suggest there are potential bank runs coming and credit unions are better prepared to handle such an event. 

He is not alone. Numerous other people have posted videos on TikTok making similar claims about the FDIC and suggesting credit unions are a good alternative, Salon.com reported. 

‘Issues to Consider’

“But before you pull all the money out of your bank and head for the nearest credit union, here are some issues to consider,” Salon reported, before then listing numerous advantages of credit unions over banks, including their not-for-profit status translating into lower fees and higher deposit rates, positive poll numbers among members, local ownership and member-ownership. 

“Moving your money to a credit union could be prudent if you want lower fees, personalized service and a community-oriented experience,” Salon.com stated. “However, access to credit unions could be limited by their specific membership requirements. Some only serve educators or military service members, for example, or people who live and work in the same area. Credit unions might have fewer branches or ATMs than banks offer, or fewer products and services like digital banking.”