NEW YORK--Recently a friend told the story of his 80-year-old father submitting a check for payment at Washington Mutual.

"The bank bounced the check," he said.

Think about it: Your check didn't clear, not because of you but because the bank had insufficient funds. Not a story you hear often and sad indeed.

Washington Mutual, IndyMac, Wachovia. Sweaty palms everywhere as people wonder what's next. If you haven't already, it might be time to check out your corner credit union.

Those on the highest ground fare better in a hurricane. So where's the "high ground" in financial services today? Right now, credit unions. You can sleep at night, often with better rates and a better experience to boot.

There are a lot of compelling reasons, especially now:

Not-for-profit status. They're owned by members. They aren't out to earn big profits. No big employee bonuses, no dividends to shareholders, no taxes on any earned surplus. So they can offer you better deals, and have no motive to gouge you with profit-makers such as high fees. See related story.

Self-funding. According to the Credit Union National Association, 70% of loans are funded through a credit union's own deposits. And, they've largely steered clear of the subprime mess, with only 0.7% of mortgage loans delinquent in July compared to nearly 9% of all mortgages that are either delinquent or somewhere in the foreclosure process for the lending industry overall. Since they generally don't sell loans to others, they can work with you without having to conform to ever-tightening downstream rules. And they don't buy loans from other institutions either -- that's another "sleep well at night" factor.

Different deposit insurance. Since FDIC is backed by the full faith and credit of the U.S. government, it's probably a non-issue. But recent failures and news accounts show that the FDIC program - guarantees or not - is stressed. The National Credit Union Share Insurance Fund (NCUSIF) offers similar protection and has hardly been touched. Another good sleep-at-night factor these days.

Better rates, lower fees. It varies some, but fees charged, including mortgage, checking account, and punitive fees for overdrafts, etc., are often lower at credit unions, while rates paid on deposits can be higher, and rates charged for loans might run a little less. See CUNA comparison chart.

Watch the downsides

Be careful: There can be some downsides. Because of their size and employee compensation, they may not attract the most talented advisers. They may not offer all the services of a bank, and some don't use the most modern tools to manage their operations. And credit unions can fail, too. See related story.

But you'll find the bigger ones really look, feel and act like banks and thrifts. And you're likely to find they treat you like a person, like the corner bank of the old days. That's worth a lot in today's stormy weather.

Jennifer Openshaw is co-founder and president of the soon-to-launch WeSeed, a new approach to demystifying the stock market for everyday people, and author of "The Millionaire Zone." You can reach her at  jopenshaw@themillionairezone.com.

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