Low cost loans and secure savings
How does it Work? – Savings
Many thousands of people regularly deposit money with them in savings accounts through their salary (or through their bank). These savings are used to provide low cost ‘Saver Loans’ to members when they need to borrow. Members can take their savings out on demand unless they take a loan. Savers normally receive a profit share on savings in the form of a co-operative dividend. A single deposit can be split into separate savings accounts, helping people to budget for future spending plans.
How does it Work? – ‘Saver Loans’?
Because they have no outside shareholders loans are very low cost. The unique ‘Saver Loan’ sees part of the borrowers regular payment allocated to the members savings account. Once the loan is cleared the borrower is left with a lump sum of savings, reducing, and eventually eliminating the need to borrow in future.
Is it the same as a conventional Bank?
They are owned and controlled by members rather than outside investors, so are driven by the needs of ordinary members/customers rather than external shareholders. This means they are willing and able to help people who are paying too much for, or cannot access mainstream financial services. Not only do they encourage people to save rather than borrow, they can also provide support and advice on how to manage money.
We can make it easy to save. You can have different budgeting accounts for things such as holidays, home improvements, or Christmas. If you ever need to borrow then you will find the ‘Saver Loans’ a really good deal. By joining and using the credit union you also know that you are playing your part in helping many people escape from permanent debt and poverty.