What's
in it for me?
Credit Unions exist only to benefit you and your fellow members
and offer safe savings, low cost, ethical loans from a not-for-profit
co-operative,
free Life Savings and Loan Protection insurance.
What are Credit Unions?
Credit Unions are not for profit co-operatives that provide
financial services to their Members. They offer a safe and
convenient place to save
and also provide loans at a very reasonable rate of interest.
They are mutual organisations and are driven by an ethos of
service to their members,
rather than maximising profits.
How secure is my money?
Credit Unions are set up under the Credit Unions Act 1979
- Credit Unions, banks and building societies are supervised
and regulated by the Financial
Services Authority (FSA). The Financial Services Compensation
Scheme provides a final safety net if a bank, building society
or Credit Union should collapse. If the worst should happen,
the Financial Services Compensation Scheme is able to provide
compensation to ensure that you do not lose all your savings
and provides 100% compensation for the first £50,000
of savings. For further information about the scheme please
refer to the FSCS website www.fscs.org.uk or call 0800 678
1100.
Can I use London Mutual Credit
Union for my Current Account?
The Credit Union offers a Credit Union Current Account (CUCA)
to its members. The account does have an ATM card and a Debit
card, and you can set
up standing orders and direct debits to pay your bills. There
is a small weekly charge for the CUCA - please ask for details
or check our website for
the current charge.
How do I save with the Credit
Union?
Directly through your payroll - when you open a Credit Union
account you can decide how much (or how little!) you want
to save each month and we will
inform your employer. If you take a loan from the Credit Union
the amount deducted can be changed to cover loan repayments
and savings.
How much interest do I earn
on my savings?
The Credit Union does not pay interest on savings - we pay
an annual dividend based on the profit the Credit Union makes
after all the operating expenses and reserves are calculated.
The amount varies depending on the profit and it should be
noted that in some years there may not be a dividend at all.
We do pay interest on our Young Savers' accounts, so why not
encourage your children to save with the Credit Union as well?
What is the cost of borrowing?
Our competitive interest rates vary depending on the amount
you borrow and we calculate interest each day on the reducing
balance, which saves you
interest on your loan. Also, there are no set up fees or charges
for early repayment.
What is the free insurance?
Making sure your loved ones are taken care of is even more
important when you are no longer here. Every eligible London
Mutual Credit Union member
receives free Life Savings and Loan Protection insurance -
you don't pay for this, we do. When you join London Mutual
Credit Union, we will ask you to
nominate a person who you want to benefit upon your death.
Is there a Membership fee?
A one-off membership fee of £2.00 will be charged to
all new members.
How do I join?
You can join the Credit Union quickly and easily through
the website - just
click here to join online
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