Savings

Savings in a Credit Union are known as “shares”.

Saving money is not easy.

The Credit union helps you by encouraging the habit of saving.

If you develop the habit of putting some money by in the Credit union on a regular basis, saving will be less difficult.

Many members have experienced the satisfaction and sense of well-being at having sufficient Credit union savings built up when the unexpected need of one kind or another arises.

A Credit Union Savings Plan

Regular Credit Union saving can help you build up a substantial savings account: Regular small savings accumulate to large amounts in a surprisingly short period of time.

If you save each week In 1 Year In 3 Years In 5 Years
£5 £260 £780 £1,300
£10 £520 £1,560 £2,600
£20 £1,040 £3,120 £5,200
£50 £2,600 £7,800 £13,000

This table does not include dividends you would recieve. Adding dividends could increase the totals substantially.

Share (Savings) Withdrawals

Credit Union shares (savings) can be withdrawn at the members’ request.

However, members are encouraged to maintain their savings balance intact so that their savings:

  • Continue to earn a dividend
  • May benefit from Life Savings Insurance protection
  • Maintain their Credit worthiness and capacity to borrow.

So it may be wiser for you not to withdraw your savings, but instead to take a loan with repayments suited to your financial circumstances.

Your Credit union will be best able to advise you of any special conditions relating to the withdrawal of savings.

Security of Shares (Savings)

There are many layers of protection covering savings in the Credit union.

All moneys received are banked regularly.

Payments are made by cheque.

Full books of account are kept and financial statements placed on public display in the Credit union office.

All persons handling Credit union cash are surety bonded.

Finally, Quarterly and Annual certified returns are lodged with the Financial Conduct Authority and are on public record.

Return on Shares (Savings)

Savings are used to make loans to members.

The interest from loans and investments is used

  • To pay expenses
  • To build up reserves (capital) and
  • The remainder may be returned to the members by way of dividend and rebate.

The rate of dividend will vary from year to year and is dependant on the financial performance of the Credit Union. Many Credit union members are less interested in the amount of dividend than in the many other benefits. The benefit most appreciated by the saving member is the entitlement to apply for a loan for any useful or productive purpose.

Maximum Shares (Savings)

The maximum you can hold in your Credit Union account, as of the 1st October 2017, is £20,000.  This is a combined total of Shares, Easy and Social