SHAREHOLDING IN KILREA & DISTRICT CREDIT
The proven way to save for a rainy
normally inevitable that there will have times in our lives when we will be short of
bargaining power, whether we need to buy food and other basics or we need to repair a damaged
home or pay for urgent health care or a car or motor-cycle to take us to
can, of course, go to the high-street banks and other lending agencies for a loan to tide us over
if we have established an impeccably good track record and we are prepared to pay
pretty high fees for the service. Fees asked for at these establishments are
A preliminary discussion and set-up
Punitive late or missed payment
Kilrea & District No.5 Credit Union Ltd you can prepare to avoid all this
hassle! Members invest in the credit union by purchasing shares in the business over a
period of time. This helps to strengthen their credit union so that when that member needs either a
'rainy day' loan or a normal loan for 'day to day' expenses the credit union is more than willing to
Members can also withdraw their shares as cash at one week's notice, if they so desire,
and do not have to take a loan. However, it must be said that credit unions are prohibited in the UK from
acting as banks. They cannot therefore allow continuous saving and withdrawing of
Saving in a Credit Union = Buying Shares in the Credit
can be bought in large or small amounts up to a maximum holding of 15,000 shares costing £15,000.00.Members
can purchase shares weekly or monthly in amounts that they are comfortable with. The capital raised by
the credit union (CU) in this way is deposited in an approved bank or loaned out to other
members. These activities earn interest for the CU which is used to pay for the CU's legitimate running
costs. Any surplus is used by the CU to build up its own reserve fund for its own 'rainy day' and
the remainder is used to pay an annual dividend to the members. This dividend is distributed in proportion
to the members' shareholdings - the more shares, the more dividend!
Saving in a Credit Union = Dividends
an individual saves in a bank or other similar organisation he or she usually has no control or say in what
that organisation does with their money. The credit union is different! Here the individual becomes a
stakeholder right away. Even the purchase of a single £1 share entitles that individual to an invitation to
attend, AND speak-at, AND vote in decisions taken at the main annual CU board meeting. Credit
Union Boards (also known as organising committees) actively encourage their members to get involved in
order to make their CU the very best that it can be.
Saving in a Credit Union encourages thrift and good
credit union in Northern Ireland is obliged to have its audited financial figures for last year on public
display in its office. Members should always be aware of how well their CU is doing - after all they
have a real stake in the business as they are all shareholders!
Credit Unions have nothing to hide
individual who is interested in saving in a dynamic system which is custom built to support its own members
should look towards their local credit union office for further details. Each CU is run slightly
differently from its neighbour and it is up to the individual's personal choice as to which on to join.
There is no barrier in belonging to more than one credit union.