The proven way to save for a rainy day

It is 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 work.  

We 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 typically:

  • A preliminary discussion and set-up fee!  
  • On-going interest payments  
  • Life Insurance fee  
  • Early -re-settlement surcharge  
  • Punitive late or missed payment penalties  

At 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 help.

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 shares.

Saving in a Credit Union = Buying Shares in the Credit Union

Shares 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

When 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 management

Each 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

An 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.

Today could be the right day to join your local credit union
So if you are eligible - why not make it along to Kilrea & District No. 5?

Click here for an application form


Ayn Rand

Money is the barometer of society’s virtue.

 A creative man is motivated by his desire to achieve,

not by his desire to beat others…..