The deposits that add up to more than $250,000 usually come from government agencies.
Right now, if they’re looking for a place to safely keep those funds, they have to look to a bank. But as of April 1, credit unions will also be eligible to secure such funds.
So far five Oregon credit unions applied for the consideration and will likely be approved to begin taking these larger deposits on April 1.
The Oregon State Treasury says this adjustment will simply give government agencies more options for how they hold their money.
“When it comes to running a city or a county, the money that comes in and the money that goes out adds up pretty quickly. Local cities can have budgets that are millions of dollars. This legislation will also allow credit unions to house some of that money,” said James Sinks, Oregon State Treasury Representative.
Five other credit unions plan to submit their paperwork to be considered for the more than $250,000 deposits, two of which are local–Northwest Community Credit Union and Oregon Community Credit Union. The other eight on the books so far range from Portland down to Klamath Falls.