Savings & Shares
“You have a share in the ownership of the Credit Union”
Savings as shares in a Credit Union are a better way to save. You are not just another customer but an active member of a highly successful financial co-operative. Yes, you have a share in the ownership of the Credit Union. Along with having a say in the operation of the Credit Union you also earn dividends.
Saving regularly and borrowing sensibly are important elements to remember when it comes to managing your money. Saving regularly gives you financial security, independence, peace of mind and an attractive return on your savings.
It is through the accumulation of members’ shares that the credit union has the ability to grant loans. As shares act as a security against your loans, you are advised to continue to save while repaying a loan to ensure that you are well placed if you need to borrow a higher amount on the next occasion.
Benefits of Credit Union Savings
- Savings balances over and above any loan you may have are available to you to withdraw on demand.
- High dividends for savings available on demand, you will not get a higher return at the same level of risk.
- Free life cover on saving (subject to terms and condition)
- A savings protection scheme is in place to the benefit of the member up to €12,700
- There are no transaction charges or fees.
A dividend is generally paid every year on your shares. The members vote at the AGM to decide the rate of dividend for the year. The members’ decision is based on the surplus for the year and the recommendation of the Board of Directors.
Life Savings Insurance
Life Savings Insurance is another free benefit, an additional incentive to save with the Credit Union. This insurance payment is separate to both the Loan Protection Insurance and the Death Benefit Insurance.
On death, a member’s shares are paid to the Nominee. Life Savings Insurance may also be payable, depending on the age at which the shares were lodged.
For every euro you lodge to shares before age 70, you become entitled to extra insurance. This assumes that you are actively at work, or if not working, in good health. The maximum amount of Life Savings Insurance is €20,000.
The following table shows how your insurance builds up:
|Shares Accumulated||Insurance Cover|
|Under 16||25%, i.e. 25c for every euro saved|
|Age Under 55||100%, i.e. €1 for every €1 saved|
|55 – 60||75%, i.e. 75c for every euro saved|
|60 – 65||50%, i.e. 50c for every euro saved|
|65 – 70||25%, i.e. 25c for every euro saved|
|Age Over 70||0%|
Members can be assured that savings at the Credit Union are secure.
All officials, whether they are volunteers or staff, must be fidelity bonded.
An independent Supervisory Committee is elected at the Annual General Meeting to act as an internal auditor and also to ensure that the Board of Directors comply with the Credit Union Act, 1997 at all times.
An independent auditor, appointed by the members at the Annual General Meeting, audits the annual accounts.
The Credit Union participates in the Savings Protection Scheme established by the Irish League of Credit Unions. This protects savings, within certain limits.
One of the attractions of saving with the Credit Union is that shares and insurance benefits can be paid to a nominated person or persons on death (to a value of €23,000). If a member has shares/insurances in excess of €23,000, the first €23,000 is paid to the nominated person with the balance going to the estate; to be distributed along with the member’s other property, if any, under the terms of the will.
The benefit of making a nomination is that shares/insurances can be passed on death with a minimum of delay and inconvenience.
Members normally complete a nomination form when they first join and are advised to update the form, if their family or personal circumstances change. In any event, a member’s nomination ceases to be valid once they marry – members are advised to re-nominate as soon as possible after their wedding. Members under 16 years cannot make a valid nomination – the beneficiary will usually be a parent or guardian.