By October 29, Ent Federal Credit Union members will vote on whether to change from a federal to a state of Colorado credit union charter. Credit union loans usually carry NO hidden charges or penalties if you can pay off the loan early (unlike high street loans, where you could pay a charge). Bigger credit unions may have online banking meaning you can pay in online, and have branches and collection points such as local post offices; some smaller unions will have just a couple of opening hours a week and likely be based in a community centre or church hall.
Use ABCUL’s Find Your Credit Union website to find your local union and what it’s offering for its savings accounts. Most credit union savings accounts aren’t table-topping, but there are some decent rates out there if you search. Credit unions are small organisations and lack the enormous resources of the big banks. As with any type of savings, the most important thing to consider is in the event the credit union went bust, is my cash protected?”.
This common bond can be displayed by being a member of a curry club, for example, or by donating to a charity helping the South Asian community in the UK. The common bond will be reinforced once you’ve joined as My Community Bank donates on its members’ behalf to the British Asian Trust. You can pay in at the local credit union office, or sometimes through a post office. Withdrawals can be made directly at your local credit union office, by cashing a cheque at a post office, or, with some of the larger unions, with a debit card from an ordinary high street cash machine.
Credit union savings have exactly the same protection as normal savings accounts; in other words, the Financial Services Compensation Scheme will pay back £85,000 per person, per institution (falling to £75,000 on 1 January 2016). In any case, many credit unions limit the total you can save with them to £10,000 or £15,000. Most credit unions will charge you for the account – this is to cover costs, as they are not-for-profit entities.
If your union provides a bank account facility, it operates very much like a Basic Bank Account Credit unions’ current accounts are mostly provided by the Co-operative Bank. Otherwise, credit union bank accounts generally operate like any other bank account. The other thing you won’t get from a credit union bank account is the seven-day switching guarantee that high street banks offer. You can still switch your bank account to a credit union – it’s just likely to take up to a month to complete the switch.