Lurgan Credit Union’s loan rates are often better than the high street bank. But most importantly, no bank offers rebates on the interest you’ve paid like the Credit Union. In 2020, we gave our members back £30 for every £100 they’d paid the Credit Union in interest.
Similarly, our dividend paid on savings accounts provides a great return on your hard-earned cash, compared to the high street banks.
Sharing our profits
The loan interest rebate and savings dividend are made possible because we share our profits with our members.
Dividends are a form of interest. They are common in many businesses. But usually dividends are only payable to a small group of shareholders. However, at Lurgan Credit Union all of our members are shareholders. Therefore, all members benefit from a dividend payment or share of the profit.
The dividend varies from year to year. Dividend rates are agreed by the members at our Annual General Meeting.
Past dividends are not an indicator of future rates. However, for information in 2020 we paid 0.3%. In 2019 the payment was 0.6%.
After the Credit Union has retained some of the profit to build its own savings (known as reserves or capital) it pays a dividend to savers. Next we give back some of the interest paid by our borrowers.
This unique Credit Union benefit means that borrowers pay even less for our loans. In 2020 the rebate was 30% of loan interest paid, almost double the rebate of 17% in 2019.
- The yearly interest for a £5000 loan is £320
- 30% (loan interest rebate) of the yearly interest is £96
- The £96 was paid back to the member in time for Christmas
Free insurance and funeral assistance
You can feel safe in the knowledge that if you were to die whilst borrowing from Lurgan Credit Union, some – or all - of the balance of any outstanding loan would be repaid.
Additionally, up to 2 times your savings would be paid to your named beneficiary.
Furthermore, a payment of up to £3,000 is made to cover funeral expenses.
As with all insurances there are T&Cs, but these unique benefits are all FREE of charge.
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