What is a Credit Union?
A Credit Union is a community-based co-operative that provides straightforward, affordable financial services to its members.
Credit Unions are not for profit, so any income generated from loans helps meet operating costs, build up financial reserves and pay savers an attractive annual dividend.
How does it work?
When you join a Credit Union, you agree to make regular savings every week, fortnight or month. This can be as little or as much as the member can afford. In return, they may receive affordable credit, financial advice and a healthy return on their money.
- Members save in a common fund
- This fund provides low interest loans to members
- The interest generated from loans covers administration costs
- Any surplus returned to members as a dividend
Are Credit Unions Safe?
As members of the Financial Services Compensation Scheme, in the very unlikely event of a Credit Union failing, savers will be compensated: The FSCS will repay 100% of the first £85,000 of a members savings.
If you think we've done something wrong, please contact us and let us know. If, after going through our internal complaints procedure, you're still unhappy, Credit Union members also have the option of complaining to the Financial Ombudsman Service.