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What is a Credit Union?
Who can join a credit union and how?
Can the people running it be trusted with the money of others?
Is there an investment return on my savings?
How does a Credit Union trade? 
How are loans applied for?
How much can be borrowed?
Are those with previous poor credit records able apply for a loan?
Complaints - how are these dealt with? 
What makes credit unions work – the 5 “P”s
What’s in it for the owner-members?
What’s next?

Is there an investment return on my savings?

Yes, there can be. Every pound saved buys a ‘share’ in the credit union.

If a trading surplus is made by the credit union, after an allocation to the reserves (a cushion against bad debts) and the length of time shares remain continuously invested; this gives qualification to a share of the dividend pool. This method stops ‘dividend stripping’ or “share pushing”, i.e. the making of short-term deposits to buy a dividend with the shares then withdrawn. This approach is unique to credit unions and underlines their fairness to all owner-members.

The Regulators can give consent to established credit unions with audited reserves (set at a regulatory level) to pay interim dividends or even have a long term fixed dividend account.

Dividends and where appropriate interest on shares is paid gross and in most cases added to the owner-member’s share account, increasing their savings.


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