Could a credit union help you with savings and loans?
When talking about loans and savings most of us tend to think automatically about banks and building societies. However, for some UK consumers an easy way to start saving, and to enjoy very low interest loan facilities, it to join a local credit union. These credit unions are registered with the financial services authority and are supported by local councils and authorities.
 In order to join a credit union there has to be some common bond – for instance some credit unions may be open to people that work for certain employers, and others may be open to people that live in a certain area. When you join a credit union you will become a member, and the union is run by its members and has a board of directors and even volunteers that help out. There are facilities for both adults and junior savers at most credit unions, and savings can be made easily and conveniently via standing order.
Some of the benefits of joining a credit union include being able to get into the habit of saving, with just a small amount needed each week or month to keep your savings going, being able to qualify for very low interest loans after you have been a member for a specified period, and having access to financial resources and advice through your membership with the credit union. And, on an annual basis members may be eligible to receive dividends.
These credit unions are fast becoming a easy, convenient way to save for general purposes or towards special occasions such as holidays and Christmas, enable consumers to save whilst enjoying a community atmosphere and having a say in the running of the union. For those looking to take a loan through the credit union the maximum monthly interest rate is two percent or below on the remaining balance, so members can enjoy excellent value on their savings.
Alisdair Milton
5th January 2007
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