Savings a Way of Life

The primary reason people join together in a credit union is to save regularly. Their savings when combined with those of the other members create a fund of savings from which members can borrow whenever they have a need. To reflect the co-operative nature of the credit union these savings are called shares. Savings are essential for the effective functioning of the credit union. Saving money is not easy, but the credit union encourages you to develop a habit of saving small sums on a regular basis. Once you develop this routine, saving becomes a relatively painless experience. It is surprising how quickly regular small sums build to a sizeable nest egg. Most members have experienced the satisfaction and sense of well being at having sufficient credit union savings built up when an unexpected need of one kind or another crops up.






Protection of Your Savings

The security of members’ savings is of the utmost importance to the credit union. All Credit Unions, like Banks and Building Societies are authorised and Regulated by the Financial Services Authority. The rules that

govern the operation of credit unions are laid down by Parliament in the Credit Union Act and the Friendly

and Provident Societies Acts. These acts provide a strict framework in which credit unions may operate.

 

  • All monies received must be banked within 2 days.
  • All directors must be approved by the Financial Services Authority
  • All persons handling cash must be covered by Fidelity Insurance.
  • Payments from the Credit union must be paid by cheque.
  • Detailed books of account must be kept up to date.
  • A supervisory committee, elected by the members, ensures compliance with these rules.
  • Under the Financial Services Compensation Scheme Members’ savings are guaranteed if the credit union is wound up. Members have recourse to the Financial Ombudsman in the event of an unresolved dispute with the credit union. At the end of each year an independent audit of the credit union’s affairs is carried out. The auditor reports his findings to the annual general meeting of the members and a detailed annual return, certified by the auditor is sent to the Financial Services Authority