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Member Notice – Shares

Member Notice – Shares

Applicable only to members who hold or intend to hold an account balance over €30,000

The Board of Letterkenny Credit Union has carried out a review of its members savings. In compliance with capital levels required by Central Bank guidelines and in common with many other credit unions experiencing accelerated shares growth, the Board of Letterkenny Credit Union has decided to place a ceiling of €30,000 per account that any member may hold.

For accounts in excess of the €30,000 ceiling, no further lodgements will be accepted.

Shares in Letterkenny Credit Union have increased by €24 million in the past 5 years and is indicative of the confidence that members place in Letterkenny Credit Union.

An increasing value of shares demands a high level of reserves, increased regulatory fees and levies combined with an ever increasing portfolio of investments in a low interest rate environment.

The setting of an upper limit on shares has been taken to protect against future pressure developing on reserves and is regarded as prudent financial management at this time.

Existing account balance How your shares will be held
€30,000 or less No change to members (while collective shares/ATM remain at €30,000 or less)
Greater than €30,000 ·       Maximum collective Shares/ATM balance €30,000

·       Any excess balance will be reclassified as Deposit

·       No further lodgements accepted

For Example:  A member with €45,000 total account balance (Shares + ATM), €30,000 will remain in Shares/ATM and the excess €15,000 will be reclassified as deposit. No further lodgements can take place.

Dividend / Interest
Shares (Dividend) No change to the procedure in relation to dividend on shares
Deposit (Interest) No guaranteed rate of interest
The level of dividend/interest will be determined by the financial year end surplus in accordance with Credit Union regulations.

 


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