Savings and Shares
Why is saving with the Credit Union better?
Whether you're saving for something in the future or just for a 'rainy day', regular saving is a good idea.
You will need €6 to open and account, a €1 entrance fee will also apply and €5 will be held as shares. There is no fee if you are under the age of 18.
When your credit union declares a dividend at the end of its financial year, each share you hold for that year is eligible for a dividend. The more shares you have, the greater dividend you receive. And you have the added bonus of knowing that your savings are being used to make loans to other members. Please note, the dividend is not guaranteed.
Members with single accounts can save up to a maximum of €35,000 in total. For members with joint accounts, the maximum savings allowed per the couple is €70,000.
Are my savings secure?
Credit unions are covered by the Government Guarantee Scheme for savings, for amounts up to €100,000. In addition, your savings are protected in your credit union under the savings Protection Scheme of the Irish League of Credit Unions. Under the rules of your credit union, your confidentiality is protected. Also, members savings are insured through Life Savings Insurance (subject to certain conditions).
For more details, see the Deposit Guarantee Scheme leaflet attached or alternatively, contact the credit union using our e-mail request on our contact page, phone us at (0504) 91700, or pick up a leaflet the next time you are at the credit union office.
What return will I get on my Credit Union savings?
Each share you hold with the credit union is eligible for a dividend when declared. A dividend is the return on your shares and is paid by the credit union out of surplus. The amount of your dividend will depend on:
- The amount of shares you have saved (one share is equal to €1)
- The surplus income available for distribution by your credit union to members
Only members of your credit union receive a dividend from your credit union. The amount paid to members varies from one credit union to another.
Can I have easy access to my savings?
You can withdraw your savings provided they are not pledged as security on a loan. However, you are encouraged to keep your savings intact so that:
- they continue to earn a dividend
- they continue to benefit form the Life Savings Insurance
- You maintain your credit worthiness and capacity to borrow
Your credit union will be happy to talk to you about suitable alternatives to withdrawing your savings.
Can anybody save with the Credit Union?
Members of a credit union are united by a common bond. This is a characteristic that every member has in common (for example, it might be where you live or where you work). Anyone within the common bond is eligible to apply for membership, and start saving as soon as they are admitted.
Nominating your savings
It is a valuable, free to members Credit Union service.
A NOMINATION is a legally binding, written instruction that tells the credit union what to do with your money in the event of your death.
The Nomination Service is very valuable to members in that it allows access to nominated funds by the nominee within a very short period of the death of the member. And while it will not relieve the loss suffered by the nominee, it serves to relieve potential cash flow difficulties.
- A Nomination is valid up to the amount of €23,000
- Any member aged 16 or over may make a nomination
- The most recent nomination invalidates any previous nomination
- A member may change his/her nomination whenever he or she likes
Under Section 21 (4) of the Credit Union Act 1997, a nomination is not revocable or variable by the will of the nominator or by any codicil to his/her will, i.e., a will does not over-rule a valid nomination.
Under Section 21 (6) of the Credit Union Act 1997, the marriage of a member of a credit union operates as a revocation of any nomination made by him/her before his/her marriage, i.e., marriage cancels a nomination.
We advise all members to make a nomination when joining and to regularly review your nomination. Nominations can be made and subsequently amended easily. Please contact us if you require more details.
If amounts greater than €23,000 are held in an account, then Irish Probate must be taken out before the excess funds can be released into the estate of the deceased member.
Note: If no nomination form has been filled in, the maximum the credit union may pay out on a member's death is €6,350. The balance of the deceased members funds goes into their estate.
Savings Plus Account
The Savings Plus Account provides members with an alternative means of savings to the traditional savings account. The Savings Plus Account will allow the member to lodge and withdraw money without restriction. In contrast to the traditional savings account, the Savings Plus Account will not be held as security against a member's loan and hence, the member is free to lodge and withdraw, regardless of whether the member has an outstanding loan or not. Money held in the Savings Plus Account will be entitled to the same level of dividend as the traditional savings account.