More and more people are experiencing, first hand, the benefits of joining a reputable credit union. Such an organisation exists to benefit its member and is run by its members as a not for profit group. Finding a credit union can mean joining up with other people from your local community, or those that are in the same industry as you. It means that you can access a regular savings account, with annual dividend payments, and it also means that you can enjoy access to a range of other services that are becoming increasingly common as part of a credit union’s offering.
Low Cost Loans
Loans are used to fund credit union activities. Members of a credit union can access cash, usually up to around £3,000, and they can use this money for whatever purpose they need. For people that struggle to get credit through more traditional means, like a bank loan, such a source of credit can mean avoiding the need to take out high interest and prohibitively expensive payday loans and doorstep loans.
The loan interest paid by members is used to fund the credit union. The money is put aside to ensure that the union cannot go bust and what is left is then used to run the credit union or is paid out to members in the shape of an annual dividend payment on their savings account. Saving is the biggest benefit of joining a credit union and any member can save.
Other Financial Services
Savings accounts can be funded in a variety of ways. Employer based credit unions normally enable the saver to have money taken from their wages and put in the account while others can use post offices, paypoint payment systems in shops, and a variety of other ways of financing a savings account. Some of the larger credit unions even have their own branches which can be used in a very similar fashion to a standard bank. Money can be withdrawn using a similarly diverse range of methods, and it may even be possible to use a special debit card provided by your new credit union.
People are more and more concerned about how their money is being used and, more importantly, how it is being kept safe. Credit unions are governed by the FSA and are subject to the same rules as banks and other lenders. What’s more, when you save or borrow money with a credit union you will receive free life term insurance cover to accompany the services that you use. This can prove highly beneficial should it ever be required.
Some forms of loan can be notoriously difficult to understand. Different loan companies have different terms and offer different rates and benefits. However, credit unions are set up to benefit the member and this means that all of their terms, conditions, and services are completely transparent. There are no hidden costs associated with either borrowing or saving money and as the rules have changed it means that credit unions are now even able to offer interest repayments, which will make it easier to compare such loans with more traditional loan offerings.
Joining A Credit Union
Joining a credit union can afford you additional financial security and ensure that you have access to some of the best financial products around. Becoming a member means ethical saving, easier borrowing, and a range of other financial facilities. More and more products are being released by an increasingly large number of credit unions too, so your options are only likely to increase in the future so you can enjoy even more services and benefits.