credit unions

what is a credit union?
the benefits if credit unions
credit union membership

what is a credit union?

A Credit Union is a not-for-profit financial institution, owned and controlled by its members. It can be set up by any group who share a ‘common bond’, (ie they work, live or have another common association) and provides a safe, convenient place for members to save and access loan funds.

Once you open a savings account with a Credit Union, you are a ‘member’ and part owner of that credit union. Your money is being managed locally and fairly, by like-minded people who understand your needs.

the benefits of credit unions

Your Credit Union provides a handy, cost-effective way of saving, borrowing and protecting. Through Life Savings and Loan Protection insurance, your savings and loans are automatically insured by the credit union, at no cost to you. 

Life Savings

Saving with the credit union means you can put as much or as little away as you wish.  Credit unions are unique in their ability to insure your savings through Life Savings insurance.  This means that should the unthinkable happen, your savings are covered up to a maximum level set by the credit union, matching life cover to your savings balance and ensuring that your next of kin are looked after.*

Click here to find out more about saving with your credit union.

Loan Protection

Your credit union provides life insurance on your credit union loan, at no extra cost to you, one of the unique benefits of credit union membership.

Your credit union automatically covers your loans (up to a specified limit) so that in the event of your death, your loan balance is paid off by the insurance provided by your credit union and you needn’t worry about passing on debt to your next of kin.*

Click here to find out more about borrowing with your credit union.

credit union membership

As a credit union member, your finances are protected in a number of ways; credit unions are regulated by the Financial Services Authority who supervise all financial services providers in the UK, from banks to building societies. Should anything happen to the Credit Union, members’ savings are protected by the Financial Services Compensation Scheme.

Due to the fact that a credit union is run by its members and is a not-for-profit financial institution, you can have a direct influence on how it is run. Through member involvement, your credit union has lower operating expenses than other financial institutions and as a member, these savings are passed on to you in the form of dividends.

The Credit Union Difference

Credit unions serve you and the community in a way that for-profit financial institutions just can’t. Apart from serving your financial needs, your Credit Union can provide unique advantages you won’t find elsewhere:

• Ownership
  Each credit union member part owns that credit union and is entitled to a vote at the Annual General Meeting (AGM), regardless of how little or how much money he or she has saved in the credit union.
• Not-for-profit
  As not-for-profit organisations, credit unions can usually offer better savings and loan rates and charge lower fees than for-profit institutions.
• Volunteer Leadership
  As a credit union member, you can vote to elect your volunteer Board of Directors at your AGM.

*Terms and conditions apply. Maximum Life Savings and Loan Protection Insurance limits are set by your credit union. Certain circumstances are not covered. A 6-month Pre-existing Condition Limitation applies to both Life Savings and Loan Protection insurance.