Savings - How can I save with a credit union?

Credit unions provide a convenient and secure way of saving. Each £1 saved is the equivalent of a single share and members can save as little or as much as they choose but on a regular basis. Savings can build up quickly once a savings habit has been established and members are encouraged to continue saving even when repaying a loan.

Greater savings held by the credit union mean greater funds available for loans to its members.

How safe is my money?

Councillor Dave Jones, officially opening the new offices at 19 Bridge Street, Denbigh, 10th May 2002. Credit unions are regulated by the Financial Services Authority (FSA) and must comply with the Credit Unions Act of 1979. Each credit union has insurance that protects your savings against theft or fraud. In addition to this safeguard, every credit union must have a supervisory committee which oversees its daily activities.

In addition, all credit unions in this country are supported by a national compensation scheme through the FSA which currently supports all banks and building societies - in effect you will be compensated if the credit union goes out of business. This is something we do not contemplate with our credit union but it is a tremendous support for our members. Your first £2000 is fully covered.

Dividends

Savings are used to grant loans to members. The interest received from loans is reinvested in the credit union. Any surplus is used to build up reserves and/or pay a dividend to members.

Withdrawals

Members are free to withdraw their savings at any time, provided that the savings are not securing a loan. Notice is usually required for large amounts in cash over £200. Members are however encouraged to keep their savings intact. This ensures that you:

Can continue to earn a dividend
Maintain credit worthiness and are able to borrow
Benefit from life insurance protection on savings

Junior savers

To become a full member you must be aged 16 or above but many credit unions, operate a junior savings scheme which encourages young people to join and develop a savings habit. At the age of 16 junior members will automatically become full members but by law must wait a further two years before being eligible to apply for a loan.

Junior membership is available to those under 16 years of age and credit union membership is an excellent way of getting young people into the savings habit.

Making Deposits

Simply bring your savings (cash or cheque), payment slip and passbook to the credit union office in Denbigh or to any of our collection points during opening hours. Your passbook will be updated immediately.

An easier alternative is to save by Standing Order - if you have a Bank or Building Society account why not download a Standing Order mandate form, from the Download forms page or click here and send it to us via the office or one of the collection points.