Savings
Members come together for two main reasons:
- To set up a means whereby they can save with security on a regular basis
- From this fund of savings to provide loans to each other.
Shares
Each €1 saved is the equivalent of a single share. Shares build up surprisingly quickly, once the member begins a regular savings pattern. At the end of each financial year the amount of savings will determine the amount of dividend allocated to each account. The more savings held by the credit union, the more funds available for loans to members.
Security
Credit union members can rest easy in the assurance that their savings are safe. Credit Unions in Ireland are secured in several ways
- All officials of credit unions, whether volunteers or staff must be fidelity bonded.
- Savings, up to limit of €12,700 per member, are protected by the savings protection scheme (which is administered by the Irish League of Credit Unions). This protection is available to all credit unions who wish to participate in the scheme, and Muintir Clanna Caoilte Credit Union Ltd contributes to this scheme.
- Members savings are also insured (subject to certain criteria) through Life Savings Insurance Scheme.
Added confidence for members:
- All monies received in credit unions are properly recorded and lodged regularly.
- Full financial statements are prepared on an annual basis, and are available for examination by all members.
- Annual independently audited accounts are returned and lodged with the Irish Financial Services Regulatory Authority.
Dividends
Dividends are the surplus monies available for distribution to all eligible members at the end of the financial year once all running costs have been covered. These funds are allocated to the members accounts following approval at the Annual General Meeting. The amount of dividend varies from credit union to credit union and it is the Board of Directors who recommend the appropriate dividend rate for that year once the year end figures are available.
Withdrawals
Credit union shares are withdrawable, provided they are not pledged as security for a loan. To execute a withdrawal the member must attend the office to complete a manual withdrawal or alternatively issue the credit union with written authority for a third party to obtain funds on the members behalf. However, as far as possible, the members are encouraged to keep their savings intact, thus insuring that
- They continue to earn a dividend
- They continue to benefit from the Life Savings Insurance Protection.
- The member can maintain his/her credit worthiness and capacity to borrow.
Members are encouraged to take out loans rather than withdraw shares, as in many cases this would be the wiser option, as long as the member can maintain the repayments.
Muintir Clanna Caoilte Credit Union Ltd will give personal advice to each member on the best course of action to follow in their individual circumstances.
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