Frequently asked questions about credit unions!
 WHAT
IS A CREDIT UNION?
It is a community owned 'bank'. You can make regular savings no matter
how small, into your account AND take out very low cost loans should
you ever need to!
Members who agree to save together, create a common fund from which
it's members can borrow at competitive rates. It is non-profiting making,
any surpluses being used for the benefit of its members.
WHO RUNS IT?
A credit union is owned and managed by its members. It is a non-profit
making community enterprise, run by local people for the benefit of
local people.
WHO CAN JOIN?
Everyone who lives or works within the county of Conwy, and any member
of their family who lives with them, can join by paying a membership
fee of £1 and opening a Standard Share account. There is a Junior
Savers Section for those under 16 years of age.
IS MY MONEY SAFE?
YES! The credit union is insured against theft and fraud and is regulated
by the Financial Services Authority (FSA). There are strict legal guidelines
on how it is run, with regular audits and controls. Remember your first
£2000 is fully covered by the Financial Ombudsman Scheme.
HOW DO I SAVE?
Savings are totally flexible so you do not have to save the same amount
each time, but we do ask you to save regularly, however small the amount.
Savings can be made at collection points, which will be established
throughout the county; or at our registered office, or by standing order
or by payroll deductions arranged with their employer. The credit union
is there to help you make regular savings so that they build up into
a sizeable sum.
CAN I WITHDRAW MY MONEY?
Yes, but we may need 7 days notice. Most members however prefer to
keep their savings intact and growing, taking out a loan instead. This
ensures they remain eligible for future loans and dividends. They also
keep their life assurance benefits intact.
DO I GET ANY INTEREST ON MY SAVINGS?
All members own the credit union and share in its success. Instead
of interest being paid a dividend is given at the end of each year.
The more savings that you have, the more dividend you earn. At present
the law allows credit unions to give up to an 8% dividend on your savings.
DO I HAVE TO TAKE OUT A LOAN?
No, you can use the credit union just to save.
WHO CAN APPLY FOR LOANS?
Anyone who is a member, is 18 or over and has been saving regularly
with the credit union for at least 2 months, may apply for a loan. The
credit union is there to get you into a savings habit. If you can show
that you can save regularly it indicates that you can repay a loan regularly
HOW MUCH CAN I BORROW?
Loans are granted to members on the basis of their savings record,
their ability to repay and according to the loans policy of the credit
union. A loan can be up to three times your savings paid back over 3
year.
HOW MUCH DO LOANS COST?
Compare our rates with anywhere else! The law does not allow us to
charge more than 1% per month (12.68% APR), AND there are no hidden
costs or extra charges.
For example if you borrow £100 over 12 months you pay back £106.21
(compare that with a bank loan!). And of course all that money goes
back into your credit union.
CAN I CHOOSE THE REPAYMENT PERIOD?
It's up to you to decide how much you can afford to pay and for how
long. Unsecured loans must be repaid within three years, so your loan
could be for two weeks or for three years.
ARE THERE ANY PENALTIES IF I WANT TO PAY OFF MY LOAN EARLY?
No, none at all.
WHO WORKS IN THE CREDIT UNION?
Credit unions are run by volunteers drawn from their members. If you
want to be involved there is always something interesting to help with.
There is training available for all volunteers. The more complicated
the job in the credit union the more training there is available. As
a volunteer you can also get credit union qualifications that will help
you with your job prospects.
IS MY BUSINESS PRIVATE?
Totally. All officers and collectors abide by strict rules of confidentiality.
WHAT ABOUT INSURANCE?
Members' savings and loans are covered by FREE insurance (depending
on age). If for example you have an outstanding loan and you die, your
family does not pick up the debt. This insurance cover is considerably
more expensive with other financial providers. Banks for example can
charge up to 20% more for insurance on their loans. Watch out for those
hidden costs. With the credit union you are secure in knowing that there
are no hidden charges.
HOW DO I BECOME A MEMBER?
It's easy; just visit the office or one of our collection points during
opening hours. It costs a pound to join and you can then open up a savings
account with as little as a pound, and start enjoying all the benefits
of being a member.
WHERE DOES THE CREDIT UNION INVEST MEMBERS SAVINGS?
Members' savings will be placed on deposit at banks or building societies.
Our Credit Union invests only with ethical investors.
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