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Credit Unions

Bank Local Credit Unions improve access to ethical, straight-forward savings and affordable loans (from £100-£15,000). They don't have shareholders to give dividends to, and are co-operatives owned and controlled by the people who save or borrow from them - their members.

Today, credit unions operate with up-to-date facilities such as online account and loan applications, and managing your money online, over the phone, or through an app.

Credit unions help to keep money in the community. The money that members save is loaned out – responsibly – to others in the community. The only way credit unions generate money is through the interest charged on loans. The interest charged on loans pays for the running of the credit union, with the remaining profit shared among members in the form of an annual dividend. Members' savings can never be used for investing in anything else - no climate or nature-damaging projects, exploitative schemes or other unethical investments.

Credit unions are a well established sector across the world, and have 217 million members in 105 different countries. In Wales, credit unions have around 80,000 members, with £53m in savings and £23m in loans. (BoE statistics, Q3 2021). A Credit Unions of Wales survey of members found that 72% of money loaned stays in the community, with 80% being used in Wales, supporting local economies. When you join a credit union, your money is safe.

Credit unions are regulated by the Financial Conduct Authority and Prudential Regulatory Authority and are part of the Government’s Financial Services Compensation Scheme, which guarantees individual savings up to £85,000 (the same as a bank or building society). Credit unions have a social purpose and serve a wide section of the population, which includes groups that are underserved by mainstream financial services.

Credit Unions of Wales

Credit Unions of Wales is a group of 8 financial cooperatives working together to improve access to services across the country and have a number of projects including:

• Moneyworks Wales: Offering savings and loans from salary with 150+ employers across Wales.

• School savers Clubs: School Savers Clubs are a practical and fun way to help children learn financial responsibility. Credit Unions of Wales School Savers Clubs not only encourage children to get into the habit of saving but help them develop their numeracy skills and understanding of personal finance.

• Budgeting Tools: Budget Planner, Car Costs Calculator, Mortgage Affordability Calculator, Land Transaction Tax Calculator, Baby Costs Calculator, Pension Calculator, Redundancy Pay Calculator, Workplace Pension Planner.

Cambrian Credit Union

Cambrian Credit Union is the main credit union covering Powys. It offers:

• A fee-free bank account with bank card and mobile app

• Loans and Micro-Loans, secured and unsecured

• Savings: Salary savings and loans, and Christmas Saving Schemes

• An option to save or repay a loan through your payroll

Links to Credit Unions

https://creditunionsofwales.co.uk/about-us/

https://www.cambriancu.com/

 

 

Page last modified: 05 Dec 2022, 18:50