Credit Unions: Official MoneySavingExpert.com Discussion

mrs_T

Apples2 wrote: »

Not many places will allow you to pay debt off by using another debt (using a CC to pay off a loan).

To use a CC you would need a Super Balance Tranfer facility where you could transfer money from the CC, into your bank account, then out again to the Credit union account.

No debt to pay, was trying to test adding someone else's money (credit card lender) to my credit union savings. I had read previously that this could go through as a purchase and not a cash advance thus allowing free access to a 0% on spending credit limit and allowing the money to be transferred out of the credit union account to a higher interest a/c for the life of the 0% deal. I'll try another retailer since the response I got was based on "we (retailer) don't accept credit card paypoint payments" rather than the credit union don't accept credit card payments.

Edit: Successfully paid £20 to credit union with credit card in co-op today. It shows as a purchase in my credit card account.

ANGELFLOWER

mrs T, this sounds interesting. What credit card did you use if you don't mind me asking? Just wondering if it is card specific.

Checked out my local credit union and they accept credit card payments.

Thanks.

mrs_T

ANGELFLOWER wrote: »

mrs T, this sounds interesting. What credit card did you use if you don't mind me asking? Just wondering if it is card specific.

Checked out my local credit union and they accept credit card payments.

Thanks.

Did it with tesco clubcard credit card which I've had for a while so no 0% on purchase left. Looking at stoozing.com tables capital 1 purchase plus card looks good in a couple of months and gives cash back on purchases as a bonus.

System

Does anyone know how the death benefit works? I have heard the pay out is double what your savings are in your credit union account?

If this is the case, do they do any checks on your medical conditions before allowing you to open an account?

Sorry, I know its a bit morbid, but would really like to know.

boogiemaster

Credit unions pay double the savings on death but the form asked me if I had any medical conditions.


An example

In the event of untimely death, members of Rugby Credit Union qualify for insurance relating to their loans or savings, subject to them not having any medical precondition

KGM_2

I live in Berkshire (not in Reading) and am glad to see that Reading Credit Union has now broadened its horizons. They're now called Community Savings & Loans. I've downloaded the application form and intend to fill it in sometime soon. They've got online access, but alas not online application. Still I guess they need a bill and one of the other usual things for proof of identity, so that's reasonable enough.

Here's some blurb from their website:

Welcome to the new website for Community Savings & Loans!

Ethical, Low cost and Local Savings & Loans for people who live or work in Berkshire.


Welcome to the new website for Community Savings & Loans Berkshire. We are currently in the process of expanding to five more locations across the county and so we are looking for volunteers in Slough, Windsor/Maidenhead, Wokingham, Bracknell Forest and West Berkshire

I checked out their volunteering bit but being in a job excludes me. Odd.

I'd be interested to hear if anyone has used this Credit Union, or know what their 'dividend' rate for savers has been recently?

edison1457

Is there any way of finding the best performing saving rates, where I live there's over 10 credit unions under durham according to http://www.creditunions.co.uk

SnowTiger

edison1457 wrote: »

Is there any way of finding the best performing saving rates, where I live there's over 10 credit unions under durham according to http://www.creditunions.co.uk

I looked in to saving with a Credit Union a while ago. My research suggested that they're not a very good option for savers because they offer a very low return on investment and no guarantees that you'll get anything at all.

And many Credit Unions don't even publish the interest they've paid out to savers in previous years on their website.

antrobus

SnowTiger wrote: »

I looked in to saving with a Credit Union a while ago. My research suggested that they're not a very good option for savers because they offer a very low return on investment and no guarantees that you'll get anything at all.

And many Credit Unions don't even publish the interest they've paid out to savers in previous years on their website.

Generally speaking that is the case. However some credit unions do offer ISAs and offer competitive rates.

wiseshark

SnowTiger wrote: »

I looked in to saving with a Credit Union a while ago. My research suggested that they're not a very good option for savers because they offer a very low return on investment and no guarantees that you'll get anything at all.

And many Credit Unions don't even publish the interest they've paid out to savers in previous years on their website.

Credit Unions don't generally pay much interest. It is usually around 1%. However, it is wise for certain people to save with them, in order to get the cheapest loans available up to around £5000.

Anyone with £1500 in savings would stand a very good chance of getting a larger loan, again up to approximately £5000, at a rate of around 12.7% APR which is excellent.

I wouldn't recommend keeping any more than £3000 in savings, as the interest is not good and you would make more keeping it in the bank.

It is worth mentioning that Credit Unions do come with free life assurance. As a general rule depending on your age, in the event of your death, your savings are normally doubled and paid to your next of kin and any outstanding loans are paid off by the insurance.

Credit Unions are commonly known as the poor mans bank and are a viable alternative to the commercial banks who often exclude low income customers from their credirt facillities

Whilst they are not for everyone, they can be a Godsend to poorer people and a way out of the poverty traps of payday loans and loan sharks.