Credit unions

MARYANNE_3

Does anyone save in them ? I`ve opened an account in Glasgow Credit Union. Dividend is 4-5.5 % , you can pay in anything from £2 and they do good deals on currency , reduction on travel etc , money is safe up to £50, 000 . I hope safer than banks ! Any comments ?THANKS

Paul_Herring

http://www.lovemoney.com/news/manage-your-finances/600-new-banks-to-be-created-3366.aspx

Milarky

It stikes me from that article that if credit unions can, for the first time, offer an 'agreed' rate of interest rather than a dividend it may lead to differential payouts also. For example if you agree to leave a deposit for 12 months (a 'bond') which suits the CU's book balancing you'd expect to be offered more than their 'no notice' ordinary share account wouldn't you?

At present all members' share accounts recieve a 'dividend' (uncertain) rate of interest - but it is always at the same rate for every member - in fact it has to be....

ahai1

Here is a a long discussion on credit unions http://forums.moneysavingexpert.com/showthread.html?t=1279887&highlight=credit+unions and you will find a wide range of views. It would be better to look at the official discussion and then post any comments or views you have on it as it answers a lot of the questions. i look forward to your posts.