How does a credit union work? From savings to loans and mortgages, here’s what you need to know – Daily Record

Posted on:

As the saying goes, the love of money is the root of all kinds of evils. 

But there’s nothing to say that being savvy with your cash can conjure up any evil spirits.

If you’re keen to save your money in a safe place, watch it grow and help others in need, joining Glasgow Credit Union could work for you.

Hayley Street at Glasgow Credit Union explained: “The way the credit union works is straightforward: we provide a safe place for members to save and these savings allow us to offer a range of ethical, affordable loans and mortgages.

“The profit generated from these products allows us to invest in our future, our communities and reward our members.”

Here are seven things to think about before signing up.

1. Easy access to savings and you’ll earn an annual dividend

You can save between £5 and £1000 each month with Glasgow Credit Union and for your efforts, you’ll be rewarded with an extra percentage pay out in December.

It’s easy to add money to your pot too.

If your work is one of the credit union’s employer partners, it can come out of your savings, or you can arrange a Direct Debit to come out of your bank account.

You can access your savings at any point too, so if you need to make a withdrawal for an emergency plumbing issue or the like, your money is available to you when you need it most.

2. Access to loans and mortgages

If you’ve found a house you love, want to get on the property ladder or need a loan for something; all these services are available to Glasgow Credit Union members.

At Glasgow Credit Union, there are a range of mortgages available to suit your needs and unlike a bank or building society, the credit union doesn’t borrow from other lenders so you can rest easy in the knowledge that you won’t be directly impacted by any Bank of England base rates.

All the rates at Glasgow Credit Union are based on their Standard Variable interest rate.

If you’re on the lookout for a loan, you can borrow between £500 and £25,000, depending on what suits you.

You’ll get an instant decision, no early repayment fees, it’s a quick and easy online application, you can pay the money back over one to seven years and you’ll be able to grow your savings alongside your loan repayments.

3. Your money is covered by Financial Services Compensation Scheme

You won’t have to worry about the safety of your money as being a member of Glasgow Credit Union entitles you to the protection of the Financial Services Compensation Scheme.

This means that if the union is unable or likely to be unable to pay compensation to you, you won’t miss out.

4. Glasgow Credit Union is regulated in the same way as banks and building societies

By being a member of Glasgow Credit Union, you’ll be granted a more personal experience, but that doesn’t mean you won’t receive a professional service.

Glasgow Credit Union is authorised by the Prudential Regulation Authority (PRA and regulated by the Financial Conduct Authority (FC).

This means that the PRA and FCA supervise the credit union and ensure they are meeting their regulatory requirements, so your money and lending is protected as well as regulated.

5. Free Life Savings and Loan Protection cover

When you save with Glasgow Credit Union, you will receive free Life Savings cover, which can grant your family an added financial benefit should anything happen to you.

In the event of your death, the Life Savings cover will provide a one-off payment, equal to the value of your savings (up to £10,000 and before your 65 birthday) to your estate.

And loans you take out will also be covered by the credit union’s Loan Protection scheme meaning that your loved ones won’t have to pay off your debt should you pass away before your final payment.

You’ll be covered for up to £25,000 and until your 80 birthday.

6. Glasgow Credit Union gives back to the community

By being a member of Glasgow Credit Union, you’ll make a difference to people living in the city.

Giving Glasgow, the credit union’s charitable giving fund donated over £21,000 to 40 Glasgow-based good causes and charities last year.

Glasgow Credit Union also supports the Beatson Cancer Charity as their charity partner and has done so for three years.

This relationship means people in Glasgow suffering from cancer gain extra support and funding thanks to the credit union.

7. Glasgow Credit Union teaches people how best to manage their money

Financial education is often lacking in schools, but Glasgow Credit Union are taking steps to ensure people are well educated in how to look after their cash.

The credit union staff works with employability groups, schools, universities and employers in Glasgow to provide tailored content around budgeting, borrowing and the credit union ethos.

To join Glasgow Credit Union, visit www.glasgowcu.com or call 0141 274 9933.

  • This article was brought to you in association with Glasgow Credit Union.

Leave a Reply

Your email address will not be published. Required fields are marked *