||Savings at Pomeroy Credit Union
Pomeroy Credit Union actively encourages its members to save. Each £1 of savings in the Credit Union equals a share in the Credit Union.
The purpose of the Credit Union is to promote thrift among its members and by the accumulation of their savings create for themselves a source of credit at a fair and reasonable rate of interest.
Some of the many benefits of saving with Pomeroy Credit Union:
- Easy access to your money once it is not used as security against a loan
- No hidden charges or fees on any transactions
- Free life savings insurance for eligible members
- Savings earn dividends which are paid annually
When you save with us you are also building a history which will be taken into account in the future should you wish to apply for a loan.
The money you save with us is used by the credit union to fund the loans it makes to members. By saving with us you are indirectly helping your neighbours and the community to develop.
Are my savings secure?
Credit Unions in Northern Ireland are covered by the Financial Services Compensation Scheme (FSCS) which is administered by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). This scheme provides compensation to depositors if a credit institution is forced to go out of business. It covers deposits held with banks, building societies, and credit unions. Please see the financial services compensation scheme website for further information: www.fscs.org.uk.
In addition to this, the Savings Protection Scheme (SPS) owned and operated by the Irish League of Credit Unions is available to proactively intervene to protect members’ savings by making available financial assistance to help any credit union which may experience difficulties.
Also, members’ savings are insured through Life Savings Insurance (subject to certain terms and conditions).
What's a Dividend?
A Dividend is the interest you earn on your savings, but because you are a shareholder in the Credit Union, it’s known as a dividend.
In 2015 the dividend on accounts was 1%. The rate varies from year to year and is dependent on the performance of the Credit Union. Our Members vote at the AGM as to whether they wish to accept the Auditors recommended dividend figure.
Can I have easy access to my savings?
You can withdraw your savings provided they are not pledged as security on a loan. However, you are encouraged to keep your savings intact, so that:
- They continue to earn a dividend
- They continue to benefit from the Life Savings Insurance protection.
Pomeroy Credit Union are giving their senior members the opportunity to open a sub account called an Easy Shares account. This Easy Shares account is available so that members can save for bills such as holidays, heating oil, Christmas, etc. The balance of this Easy Shares account and the members’ main account cannot total more than the £20,000 limit. This account allows the members more flexibility with the money saved in it and can be withdrawn at any time. The money is this account cannot be used as collateral for a loan.
Here is how a savings plan in the Credit Union can help you to build up a substantial savings account.
|Years||£1 per week||£5 per week|
This table does not include dividends which would increase the above totals.
Withdrawal of Savings
You may withdraw your Credit Union savings upon request. However, if shares are pledged as security against a loan then they cannot be touched unless special permission is granted from the Credit Committee.
Members are encouraged to consider taking a loan to meet their needs, thereby keeping their savings (and the insurance they earn) intact.
Always seek advice from staff before withdrawing savings.