Lurgan Credit Union encourages all members to develop a regular savings habit.
Savings in a Credit Union are known as ‘shares’. This is because when you save with the Credit union you own a part - or share - of the business. This doesn’t cost you anything because your savings / shares can always be withdrawn.
Being a member-owned business is just one of the many benefits of saving with Lurgan Credit Union:
- All savings are protected by the Financial Services Compensation Scheme
- All accounts are protected with free Life Savings Insurance
- Savings payments to suit your budget
- Members with a good savings history are more likely to be accepted for loans
Lurgan Credit Union offers Regular and Easy Share accounts.
Regular Share Account
You can pay in as often as you like with regular deposits or lump sums.
Importantly, the savings balance is taken into account when assessing your application for a loan. A good savings history means you’re more likely to be accepted for a loan. Savings can be used as security for your loan, meaning you can access higher value loans.
Easy Share Account
The Easy Share Account helps members plan for anticipated future expenditure (like saving for a home improvement). The account can also be used for day to day budgeting for bills and other household expenses.
There is no credit facility available on this account. Because of this your shares can be withdrawn on demand. However the balance is not taken into consideration as part of the loan assessment. Nor will the balance contribute towards any Funeral Assistance benefit. The shares in the ‘Easy Shares’ account are completely separate.
An Easy Share Account can hold a maximum of £10,000 in shares at any time. The total limit for all savings accounts is £20,000.
A Credit Union Savings Plan
Put in a savings calculator here.
How to withdraw your savings
Credit Union shares (savings) can be withdrawn at the members’ request.
However, members are encouraged to maintain their savings balance intact so that their savings:
- Continue to earn a dividend
- May benefit from Life Savings Insurance protection
- Maintain their credit worthiness and capacity to borrow.
So it may be wiser for you not to withdraw your savings, but instead to take a loan with repayments suited to your financial circumstances.
Your savings are well protected at the Credit Union:
- Savings are protected by the Financial Services Compensation Scheme
- The Credit Union is regulated by the Financial Conduct Authority and Prudential Regulation Authority. This means that we must follow procedures to safeguard your savings.
- Senior managers at the Credit Union are evaluated as being ‘fit and proper’ by our regularoes
- All persons handling Credit Union cash are insured
- Full books of account are kept and financial statements placed on public display in the Credit union office.
- Quarterly and Annual certified returns are lodged with the Financial Conduct Authority and are on public record.
Return on shares / savings
Savings are used to make loans to members.
The interest from loans and investments is used
- To pay expenses
- To build up the Credit Union’s own savings (known as reserves or capital
- The remainder may be returned to the members by way of dividend and rebate on loan interest.