What is a Credit Union?
A Credit Union is a not-for-profit, democratically run financial co-operative which offers convenient savings, loans and insurance to its members.
Owned and run by the members, Credit Unions are based on the philosophy of ‘people helping people’. Members save in order to provide their fellow members access to credit in the form of loans. Being not-for-profit, the interest charged on these loans is then paid back to the savers in the form of an annual dividend.
Will I get interest on my savings?
Credit Unions pay a dividend on savings rather than interest. What’s the difference? The dividend is not guaranteed. A Credit Union will pay a dividend if it has surplus (profit) remaining after all running costs have been paid.
Plane Saver paid dividends of up to 6% last financial year!
How secure is a Credit Union?
• Credit Unions must be regulated by the Financial Services Authority (FSA)
• Subject to Money Laundering Regulations
• Part of the Financial Ombudsman Service
• Part of the Financial Compensation Scheme, which ensures a safety net for through 100% protection for up to £85,000 savings per individual member.
• Registered with Data Protection laws ensuring all members accounts are confidential.