Frequently Asked Questions
What is a Credit Union?
It is a community owned 'bank'. You can make regular savings no matter how small, into your account AND take out very low cost loans should you ever need to.
Members who agree to save together, create a common fund from which its members can borrow at competitive rates. It is non-profiting making, any surpluses being used for the benefit of its members.
Who runs it?
A credit union is owned and managed by its members. It is a community enterprise, run by local people for the benefit of local people.
Who can join?
Everyone who lives or works within the counties of Gwynedd and Anglesey, and any member of their family who lives with them, can join by paying a membership fee of £1 and opening a Standard Share account.
There is a Junior Savers Section for those under 16 years of age.
Is my money safe?
YES! The credit union is insured against theft and fraud and is regulated by the Financial Services Authority (FSA). There are strict legal guidelines on how it is run, with regular audits and controls.
In addition, since 2nd July 2002, all credit unions in this country are members of the Financial Services Compensation Scheme which also involves all banks and building societies. This means that you would be fully compensated if the credit union went out of business. This is something we do not contemplate with our credit union but it is a tremendous support for our members. The first £50.000 of your savings is fully covered.
Further information is available from our Credit Union or direct from:
The Financial Services Compensation Scheme
Customer Services Team : 020 7892 7300
Email: enquiries@fscs.org.uk
Write to: Financial Services Compensation Scheme
7th floor, Lloyds Chambers
Portsoken Street
London E1 8BN
Fax: 020 7892 7301
Web site: www.fscs.org.uk
How do I save?
Savings are totally flexible so you do not have to save the same amount each time, but we encourage you to save regularly, however small the amount. Savings can be made at collection points, or at our registered office, or by standing order or by payroll deductions arranged with your employer. The credit union is here to help you make regular savings so that they build up into a sizeable sum.
Many members now have some or all of their benefits paid directly into their credit union account. This makes managing savings or loan repayments easier.
How can I withdraw my money?
Your money can be withdrawn at any time we are open by calling in to the office.
You must leave £5 in your account to keep it open.
Cheques can also be posted to you following a written request for the withdrawal.
Many members, however, prefer to keep their savings intact and growing, taking out a loan instead. This ensures they remain eligible for future dividends and they also keep their life insurance benefits intact.
The Christmas savings account does not allow withdrawals until November unless the account is closed.
Do I get interest on my savings?
All members own the credit union and share in its success. Instead of interest being paid a dividend is given at the end of each year.
The more savings that you have, the more dividend you earn. At present the law allows credit unions to give up to an 8% dividend on your savings. The dividend is decided by members at the AGM.
Do I have to take out a loan?
No, you can use the credit union just to save.
Who can apply for a loan?
Anyone who is a member and is 18 or over may apply for a loan. The credit union is there to get you into a savings habit. If you can show that you can save regularly it indicates that you can repay a loan regularly.
How much can I borrow?
Loans are granted to members on the basis of their ability to repay and according to the loans policy of the credit union. The savings record is taken into account as showing ability to manage money.
How much do loans cost?
Compare our rates with anywhere else! The law does not allow us to charge more than 2% per month (26.8% APR), AND there are no hidden costs or extra charges.
From time to time lower rates are made available: please ask for details.
So if, for example, you borrow £100 over 12 months you pay back £112.69. And of course all that money goes back into your credit union.
Can I choose the repayment period?
It's up to you to decide how much you can afford to pay and for how long. First loans have to be paid back over a maximum of 12 months but subsequent loans may be repaid over three years, so your loan could be for two weeks or for a year or more.
Are there any penalties if I want to pay off my loan early?
No, none at all. There are gains, though because interest is charged daily only on the amount outstanding.
Who works in the credit union?
Credit unions are run by volunteers drawn from their members. If you want to be involved there is always something interesting to help with. There is training available for all volunteers. The more complicated the job in the credit union the more training there is available.
As a volunteer you can also get credit union qualifications that will help you with your job prospects.
Is my business safe?
Totally. All officers and collectors abide by strict rules of confidentiality and have to sign a confidentiality agreement.
What about insurance?
Members' savings and loans are covered by FREE insurance (depending on age). If for example you have an outstanding loan and you die, your family does not pick up the debt. This insurance cover is considerably more expensive with other financial providers. Banks for example can charge up to 20% more for insurance on their loans. Watch out for those hidden costs. With the credit union you are secure in knowing that there are no hidden charges.
Other insurance products are also available to members at preferential rates. Please ask for details.
How do I become a member?
It's easy. Just visit the office or one of our collection points during opening hours.
Alternatively telephone for an application form or download one from this site. It costs £1 to join; you can then open up a savings account with as little as a pound, and start enjoying all the benefits of being a member.
Where does the credit union invest members savings?
Our aim is to get a high proportion of members’ savings out on loan to other members. We have to retain money in our current account, of course, and this is “swept” regularly into a deposit account. Where we do place it on higher interest deposit we have to ensure easy access and the best rates we can obtain, though we do not take risks with members’ money. Our Board of Directors makes the decisions on this.
