Credit Unions are financial institutions formed by an organised group of people with a common bond providing members with flexible savings, loans and a range of other financial services. Credit Unions differ from banks in several ways:
|Credit Unions:||Other Financial Institutions:|
|Not-for-profit organization||Profit-driven private companies|
|Owned by members||Owned by outside shareholders|
|Operated mostly by volunteer boards||Controlled by paid boards|
These factors allow credit unions to pay dividends to their members (not shareholders) and offer them lower rate loans, higher savings rate and fewer service fees.
The common bond is the factor that unites all members of a credit union – it is what all members have in common. The most usual common bonds are:
|•||Community bond (where all the members live and/or work in a particular locality)|
|•||Occupational bond (where all the members are in the same profession, occupation, or work for the same employer)|
|•||Associational bond (where all the members are in the same society of profession)|
Credit Union Key Benefits:
• Provide loans at low rates of interest
• Pay an annual dividend on savings
• Offer a wide range of quality financial products and services
• Offer tailored financial solutions
• Comply with and protected by FCA/PRA regulation
• Are ethical and not driven by profit
• Are easy to join and local
Glasgow has an extensive network of credit unions which include community, occupational and associational credit unions, large and small. Although the main focus for credit unions is placed upon member’s savings and borrowings, the sheer diversity of scale within the credit union sector in Glasgow has resulted in the development of an extremely impressive portfolio of high quality financial products and services that can address the needs of everyone.
It really depends on what products and services you need from a credit union.
The range of credit union financial products and services include:
|Savings Accounts/Dividends||Low-cost loans|
|Free Life Insurance||Current Accounts|
|ISAs||Child Trust Funds|
|Pre-paid Cards||Direct Debit/Standing Orders|
|Bill Paying Services||DWP Benefit Pay-in|
|Christmas Savings Plans||Funeral Protection Plus|
|On-line access||Revolving Credit|
|General Insurance||Young Savers Accounts|
For more information on all credit unions in Glasgow please visit www.cucity.co.uk or contact Glasgow City Council on 0141 287 8553.