Charter Conversion Update

Changing to a federal charter will simplify our regulatory environment and allow us to operate under one set of rules instead of two. We are currently regulated by Virginia’s Bureau of Financial Institutions (BFI) and by the National Credit Union Administration (NCUA). Being solely regulated by NCUA will be  less complex and will expand the opportunities for VACU to offer new services and welcome new member groups. Our leadership team and Board of Directors unanimously support this change.

Federally chartered credit unions are regulated by the National Credit Union Administration (NCUA).

Virginia state-chartered credit unions are regulated by the state’s Bureau of Financial Institutions (BFI) which regulates all of Virginia’s state-chartered credit unions and other financial institutions for compliance with the laws and regulations of the Commonwealth of Virginia. Note, state-chartered credit unions must still comply with rules and regulations from certain federal agencies, like for example, the NCUA.

You will see little to no impact to your products and services due to the charter change. You will still be able to transact business in the same way you do today. You will still be able to use the same routing number for ACH transactions, loan and savings products will stay the same, and our website and digital banking will remain the same. The charter change from state to federal, will allow VACU greater flexibility in growth of our organization and membership, which will allow us to offer our great rates and service to more in our community.

No. Credit Union deposits will continue to be federally insured by the NCUA, meaning you have up to $250,000 in protection for an individual account. The NCUA provides separate insurance coverage for deposits held in different ownership categories such as individual accounts, joint tenancy accounts, Individual Retirement Accounts (IRAs), and trust accounts.

Yes. Having obtained unanimous approval from our Board of Directors the second step is approval by VACU members. Upon that approval the third step in converting from a state to federal credit union is approval from the National Credit Union Administration (NCUA). Member voting will take place virtually from August 24 through September 21, as well at a special virtual meeting on September 21 at 4:00 pm.

We anticipate the full process of converting to a federal charter will occur in 2024.

We will continue using Virginia Credit Union (VACU) as our trade name. The only change to the name will be to add the word “Federal” to our legal name. You may see this referenced on official documents.

No. Member voting rights will remain the same.

Yes, you will still be a member if you relocate outside of VACU’s field of membership. Once a member, always a member.

No. In 1928, we were started by employees of the Commonwealth of Virginia. We remain committed to serving these SEGs and agencies. There would be no changes to who we currently serve. Obtaining a federal charter simply allows us to serve more Virginians.

No, Virginia Credit Union has no plans to expand outside of Virginia at this time.