Encouraging the getting into habit of saving is an important part of the Credit Union message. Regular saving and sensible borrowing are key elements when it comes to managing your money.
Saving regularly gives you financial security, independence, peace of mind and an attractive return on your savings. Regular saving with your credit union is an even better idea. At your credit union, you're not just a customer, you're a member of a successful financial co-operative.
Return on Savings from our Credit Union
Each share you hold in your credit union is equal to €1. When a 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 the dividend you will receive. Only members of our credit union receive a dividend from the credit union. The amount paid to members varies from one credit union to another.
The surplus income of the credit union is also available for distribution to members.
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 up to € 13,000 (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.
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 from the Life Savings Insurance protection
- You maintain your credit worthiness and capacity to borrow
How secure are my savings?
Credit union members can rest assured that their savings are safe. Credit Unions in Ireland, which are affiliated to the Irish League of Credit Unions, are secured in several ways:
- All officials of credit unions, whether volunteers or staff, must be fidelity bonded.
- Savings up to a limit of €12,697 per member are protected by the Savings Protection Scheme in all credit unions participating in the Scheme.
- Members savings within certain limits are insured through Life Savings Insurance.
- All monies received in the credit union are properly recorded and lodged regularly.
- Full financial statements are prepared and can be examined by members.
- Annual independently audited returns are lodged with the relevant authority, The Irish Financial Services Regulatory Authority.
- Cobh Credit Union is covered under the Government Guarantee scheme up to €100,000.00
Types of Share Accounts
Regular Share Accounts
- Members present accounts with Credit Union are considered as a Regular Share Account. These accounts are suitable for those who are not liable for income tax.
- The onus is on the member to declare their account to the Revenue Commissioners.
- Dividend rate declared at A.G.M. is posted gross to members accounts.
- No disclosure is required by Credit Union.
Special Share Accounts
- Member must request in writing that their account be changed to a special share account.
- Dividend paid to member net of DIRT.
- Return made by Credit Union does not include individual members details.
- Member can hold both a regular or special share account but not both
Life Savings Protection
Life Savings insurance is a life insurance cover your Credit Union provides free of charge to all eligible members as an additional incentive to save regularly and maintain savings with the Credit Union. With Life Savings insurance, your dependants will recieve a financial sum in the event of your death. The amount they will recieve will depend on your age and how much you have saved with your Credit Union over the years.
Free Death Benefit Insurance
The main purpose of Death Benefit Insurance is to provide extra Insurance to our members in the event of their death. With your Credit Union, the benefit offered is €3,250 and is paid to the dependents of eligible members to help with funeral expenses.
- You are eligible for this insurance provided you:
- are over 16 years of age (under 16 years are automatically included)
- joined the credit union before 70 years of age
- remained a member of the credit union
- are or have been eligible for cover under the Life Savings Policy
- have maintaned a balance in your shares of at least €10.00
Evidence indicates that this is a very worthwhile service to members and has alleviated hardship for many families.