Savings
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You will remember the press coverage follwing the collapse of Farepak, and the hundreds of thousands of people who had saved towards Christmas only to discover that they were unlikely to get any compensation. This tragic situation would not have happened if the people had put their savings into an account with their local Credit Union. There are currently more than 450 Credit Unions in the UK with £135m of Savings and £130m Loans. We are regulated by the Financial Services Authority to protect members savings in exactly the same way as with Banks and Building Societies. Any savings up to £2000 (and 90% of the remainder) are fully insured and you are guaranteed to get your money back in the very unlikely scenario of the Credit Union ceasing trading. |
What are the benefits of saving with the Credit Union?
- There is no minimal amount – large or small (£10,000 savings maximum)
- Savings are not invested in unethical companies
- Money kept within and benefits the local community
- Savings are not used to pay high overheads or large salaries
- No banking charges
- The Credit Union is owned by its members
- Any profits are returned to our members
- Free life insurance on savings, which can give back up to twice the amount saved on the member's death.
Why save with us?
Members like the friendly attitude of our volunteers with our convenient methods to save (payroll, standing order and deposit points in towns). These people tend to save a little each week/month towards a special purchase, or as a cash builder.
Savers want to give their money to a safe ethical financial organization that benefits the whole of the local community. Our work with low income families and debt counselling services has been proven to help with financial inclusion and lower debt problems.
Some members are simply fed up with the poor service at mainstream financial organisations. They realise that their savings with the Credit Union are not being used to pay a “fat cat” salary or to pay for glossy media campaigns. Why not use the Credit Union when our dividend and loan interest rates are so competitive?
Christmas, Special Purchase and Holiday Funds
The Credit Union provides a great way to save small regular amounts, which soon build up towards anticipated purchases. Our members use us as a Christmas Club, a Holiday Fund, saving towards the purchase of a car and even putting money aside for the yearly tax assessment!
Ethical Savers
A high proportion of the money saved with us is made available to give loans to other members. This means that our money is shared amongst our members and is only used for their benefit - nobody involved with the credit union profits from your money. Interest made on loans is used to cover our administration costs and to give a potential yearly dividend to our savers.
Save for Yourself
The Credit Union is a great place to stash away windfalls or small regular amounts which build up into a safe 'rainy day' fund.
What are shares and dividends?
Each £1 saved with the Lincolnshire Credit Union is considered to be a ‘share’ in the organisation.
Profits are returned to our members in the form of a yearly dividend which is proposed by the board of directors, and agreed with our members at the Annual General Meeting. This dividend is calculated based on the reserves, and performance of the Credit Union over the previous year.
Frequently asked questions
Can I still access my money? Your money is not tied up or subject to lengthy periods of notice. We keep a reserve of money available to allow you quick access to your savings. Your savings will only be frozen if you are in arrears with loan repayments.
Can you match my banks interest rate? Whilst we cannot match the high interest rates paid by internet banks, the typical interest on a High Street Building Society instant access account for £2,000 can be as low as 1 or 2%! We believe that this difference is minimal when compared to the financial benefits being a member of the Credit Union.
Is my money safe? The Credit Union is regulated and authorised by the Financial Services Authority, which is also responsible for regulating banks and building societies, and so we provide the same level of protection. We are also members of the Financial Ombudsman Service and the Financial Services Compensation scheme. We are also registered under the Data Protection Act.
Why should I trust volunteers? All of the directors of the Credit Union are professionals in their field of work and include Accountants and Bank Managers. Each director must be approved by the Financial Services Authority and undertake ABCUL training in order to boost competence. A Supervisory Committee, independent of the Directors, oversees the running of the Credit Union.
