Benefits of membership
All the Members of the Credit Union are owners of the Credit Union.
These are used for the mutual benefit of all Members. A well run Credit Union will generate a surplus at the end of the year from the interest charged on loans. What happens to this surplus is decided by the Members: usually a dividend(up to 8%)is paid to Members, which is proportionate to the amount they have saved.
Interest charged up to 2% per month on a reducing balance, which is equal to an APR of 26.8%. This figure compares favourably to other lenders and there are no hidden extras. All loans and repayments are arranged to suit the Member.
All Members savings attract free life insurance - in the event of member's death their beneficiary will receive the saving plus either the matching amount or double the amount e.g if member has £1500, beneficiary will receive either £3000 or £4500.
Loan protection insurance is also provided free of charge to the Member. This means if you have an outstanding balance it could be cleared* The cost of these insurances is paid for from the money generated on the interest on loans.
Because the Credit Union is owned by the Members who already have something in common due to the shared Common Bond. Well run Credit Unions can also, in certain circumstances, make grants to community groups and charities, therefore helping even more people.