ok for a second time, what are credit unions and are they safe to keep savings in???
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174JoeEasedale postedHavn't heard the question for a first time yet, but for the second time, here goes.
A credit union is a co-operative. Its membership is, pending a due change in the law, dependant upon a common bond, ie work in the same area, live in the same area, work for the same company etc.
The main Association is ABCUL - they have a website.
All credit unions are registered with the FSA and each carry the FSCS guarantee of £50000.
At present you do not earn interest on money saved, though that may change soon, but receive a dividend as a member.
Rates to borrow look high at first site, but are not. Compare apples with apples. A credit union might lend £200 at 2% per month. No high street bank will do any such thing, and the payday loan companies that do will charge 00000000's%.
There are no fat wages to pay for and the members get the dividend - often around 2% per year. Directors are unpaid, as are most staff, although some staff are on salary.
Their brief is to combat financial exclusion, and they sit in the Third/voluntary/Good cause sector.
They deserve all the support they can get and are desperately needed in these times.
Anything specific you would like to know?
Posted on 28 January 2009 |
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