Credit Unions
Credit Union
- What is a Credit Union?
- What are the benefits of a Credit Union?
- Who supports Credit Unions?
- How do they work?
- Who can join a Credit Union?
- How do you join a Credit Union?
- How much do I have to save?
- Will I get interest on my savings?
- How soon and how much can I borrow from the Credit Union?
- Security
- Are they Insured?
- Where do Credit Unions exist?
- Credit Unions in Tameside
- Other Credit Unions Sites
Telephone List of Credit Unions in Tameside
What is a Credit Union?
A Credit Union is a profit sharing, democratically run financial co-operative which offers convenient savings and low interest loans to its members. The members own and manage their credit union themselves.
The three main aims of a Credit Union are:
- To encourage its members to save regularly.
- To provide loans to members at very low rates of interest.
- To provide members with help and support on managing their financial affairs (if required).
What are the benefits of a Credit Union?
- It is an easy and convenient way to save and borrow.
- It offers very low cost loans.
- Insurance at no direct cost.
- It's a way to learn new skills.
Credit unions can provide a focal point for a community by bringing people together, to work alongside each other for their own benefit and the benefit of the community as a whole.
A credit union can help to revive the local economy by keeping money in the community. Loans to Members can mean income for local shops and businesses.
Who supports Credit Unions?
Churches, Community Groups, National Consumer Councils, Citizens Advice Bureau, Trading Standards, Police, Fire, Taxi Drivers, Tameside Council, etc.
How do they work?
The members make regular savings, as little or as much as they wish. These savings then form a common pool of money from which loans are made to members. When members have been saving for a certain period of time (usually about 12 weeks) they can apply for a loan from the pool. Interest on the loan is usually charged at only 1% per month on the monthly reducing balance. 12.68% Annual Percentage Rate (APR). The interest charged on loans is the credit union's income.
Loan Repayment Interest Table
APR Fixed at 12.68% for repayment over year
| Amount of loan given: £100 |
Total Interest due: £6.56 |
Total amount due: £106.56 |
Weekly Repayments: £2.05 |
| Amount of loan given: £300 |
Total Interest due: £19.80 |
Total amount due: £319.80 |
Weekly Repayments: £6.15 |
| Amount of loan given: £1,000 |
Total Interest due: £66.32 |
Total amount due: £1066.32 |
Weekly Repayments: £20.51 |
Who can join a Credit Union?
The membership criteria of a credit union is called the 'Common Bond' -something that applies to every member. This often something like living or working in a particular area.
Credit Unions welcome everybody from within the Common Bond regardless of income, employment status or age.
How do you join a Credit Union?
You will need to complete an application form (collect from one of our collection points or we can post one to you) and provide some ID. Credit Unions are required to meet all their members at least once so we tend to invite new members to bring their completed application and ID to one of our collection points. These are in accessible places and some of them are open on Saturdays. Sometimes we organise sign up events - look out for these in your area. If you are unable to get to a collection point then contact us and we will try to make alternative arrangements - please complete the Credit Union Contact - Online Form.
How much do I have to save
However much you can afford. Getting into the habit of saving regularly is more important than how much.
Will I get interest on my savings?
Credit Unions pay a dividend rather than interest. What's the difference? - the dividend is not guaranteed. A credit union will pay a dividend if it has a surplus after all running costs have been paid.
How soon and how much can I borrow from the Credit Union?
Most credit unions expect you to save regularly for about 12 weeks before allowing a loan and any loan will be related to your savings in some way.
The amount you will be able to borrow will depend on how much you need, what you can afford to repay, and the credit union's policies.
Security
Credit Unions must be registered with the Financial Services Authority.
They are covered by the Credit Union Act 1979 (new legislation is expected in 2010).
They are independently audited every year.
They are regularly monitored by the FSA.
Your business is private in the credit union because all members and Officers who have access to personal information must act in a confidential manner at all times.
Are they Insured?
They are insured against fraud and theft.
They provide life and loan protection insurance or are members of a Death Benefit Trust. There is no direct cost to members for these services and members are able to nominate a beneficiary.
The life savings insurance means that if you die, your beneficiary could receive an extra amount in addition to the value of your shares.
The loan protection insurance is intended to cover the amount outstanding on your loan (if you had one).
Where do Credit Unions exist?
Credit Unions are a development of the co-operative movement that started in the UK in 1850. Starting in Germany over 150 years ago they spread throughout Europe, to North America, Canada, Asia and to Ireland. Good ideas do catch on and credit unions are well established in most of the world. One third of the adults in Ireland are members of a credit union. Credit unions are steadily increasing throughout the UK both in communities and the work place. ( e.g. Police Force, British Airways, Fire Service, local authority employees etc).
Credit Unions in Tameside
Cashbox Credit Union |
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6 St Michaels Court
St Michaels Square
Stamford Street
Ashton-under-Lyne
OL6 6XN
0161 343 7621 |
Hours of Business: This is our registered office. If you wish to visit please phone or email to make an appointment (just so we can ensure that the relevant personnel are available). |
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Collection Point Ground Floor, Tameside Council Offices, Wellington Road, Ashton-under-Lyne, OL6 6XN |
Hours of Business: Saturday 10.15am - 12.15pm |
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Collection Point Haughton Green Community Centre |
Hours of Business: Monday: 11.00am - 12.00noon |
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Collection Point Denton Town Hall |
Hours of Business:
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Collection Point Hyde Town Hall |
Hours of Business: |
Money Spinner Credit Union Ltd |
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Unit 14 |
Hours of Business:
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| Arundale School (Family Room) Lowry Grove Mottram, Hyde SK14 6PW |
Hours of Business: Wednesday: 9.00am - 10.00am |
| Broadbottom Community Centre Broadbottom |
Hours of Business: Saturday: 10.30am - 11.30am |
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Dukinfield Town Hall |
Hours of Business: |
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Pinfold School |
Hours of Business: |
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Dukinfield Library |
Hours of Business: |
0161 368 0894
