Credit unions offer locally run services that help you manage your money. They offer similar products to a bank, but are owned by their members – the people who use them.
Because Credit Unions have to work to similar rules as a bank or building society your money is safe with them
Why Would You Join a Credit Union?
Here are just some of the benefits of joining a credit union:
- An easy way to save
- A low cost way to borrow
- Insurance and savings on loans are paid for by the credit union
- It is owned and run by the members
- It is regulated and insured so you know your money is safe
- The members decide what is done with the profits the credit union makes. They can be used to run the credit union in the future, invest in the community or be paid to the members in interest or as a one off payment (a dividend)
Who Can Join?
Anyone can join a credit union. Credit unions work in specific areas and you will be able to join the one where you live or work. Click here to find the nearest credit union to you.
Credit Union Savings
Even a small amount saved each week will mount up. You can open a credit union savings account from as little as £1.
Your money is protected by the Financial Services Compensation Scheme so you can rest assured that your money is safe.
You can save via a local collection point, by direct debit or by having money taken directly from your wages.
Credit Union Loans
After you become a member of a credit union you may be able to get a loan. By law the maximum interest a credit union will charge you is 42.6% APR on a reducing balance. This might sound complicated but it just means that borrowing from a credit union is much cheaper than many other loan companies.
For example if you borrow £100 and want to pay it back regularly over 3 months, it will typically cost £3.97 in interest. If you used some doorstep lenders you would be paying back £40 in interest. Payday lenders will charge you much more.
If you have built up some savings with the credit union, you may be offered a loan with an lower interest rate which means that you will pay back less. Click here to visit the Credit Unions Wales website.