Why Save? | Life Savings Insurance | Frequently Asked Questions

Q. Are my savings secure?
A. We are affiliated to the Irish League of Credit Unions and are secured in the following ways:

All savings are protected by free Life savings Insurance.
All officials of credit unions, whether volunteers or staff must be fidelity bonded.
All monies received are properly recorded and lodged regularly.

Full financial statements are prepared and available to members. These are circulated in advance of the AGM and can be examined by members.

Every credit union has an appointed supervisory committee whose role is to protect the interests of members and to act as an independent watchdog of credit unions.

Q. What are shares?
A. Every £1 saved is equivalent of 1 share in a credit union. A minimum of 5 shares/£5 is needed to keep a credit union account open. You should save regularly to build up a savings history. Each share is eligible for a dividend at the end of year. The more savings held by the credit union, the more funds are available for loans to members.

Q. What are dividends?
A. Savings are used to make loans to members. The interest received from loans and investments is used:

· To pay expenses.
· To build up reserves (capital)

The remaining income may be returned to members as a dividend. The rate of dividend varies from year to year and the dividend is applied to member’s accounts after the AGM.

Q. Can I withdraw my savings at any time?
A. All credit union shares can be withdrawn on demand, provided that they are not held as security against a loan.
Members are encouraged t o keep their savings intact thus ensuring that:
- They continue to earn a dividend
- They continue to benefit from Life Savings Insurance protection
- The members can maintain credit worthiness and capacity to borrow.

Members are encouraged to take our loans rather than withdraw their savings as in many cases this is the wiser option as long as the member can maintain their repayments. Dungannon Credit Union Ltd will give you advice on the best course of action to follow.