A Credit Union encourages regular saving and is happy to accept deposits of all sizes. The important thing is to save regularly. Their main reason for existing is not to make a profit out of their customers but to provide a service to their members. Every £1 saved with the Credit Union is a share in the Credit Union.
A Credit Union provides access to low cost borrowing with maximum interest rates set by law at 2% per month on the diminishing balance (eqivalent to 26.82% APR), and there are no hidden costs. Loans are tailored to suit individual needs. Credit Unions offer a cheaper and more personal service to everyone and members are encouraged to continue building up savings whilst repaying their loan.
A Credit Union offers a good return on savings. Most Credit Unions pay a dividend on members shares, although rates vary considerably. This is paid at the same rate for all members regardless of the size of their deposits.
A Credit Union provides insurance protection against death or serious disablement on both savings and loans. This is offered at no extra cost to the majority of members (subject to certain age restrictions).
In a Credit Union your money is secure. Credit Unions are now authorized and regulated by the Financial Services Authority and savings have the same protection as now given to banks. Nobody in Britain has ever lost money in a Credit Union. All Credit Unions are insured against fraud and theft and arestrictly regulated by Acts of Parliament.
A Credit Union can strengthen the local economy. Money saved by borrowing from a Credit Union can be spent in local shops and businesses. If 500 people in your community all save £100 by getting a cheaper loan from the Credit Union, that gives an extra £50,000 to spend which otherwise would have left the local economy.
A Credit Union is owned and controlled by its members. You and your community make the decisions. By becoming involved with a Credit Union many people learn new skills, make new friends and business contacts and play a more central role in shaping the future of their communities.