Using Credit Unions to save

Leviathan2009

I am thinking about starting a regular deposit in my local credit union. I am aware that a number of credit unions can arrange for a payment to be taken straight from a wage.

My question is whether the contribution is taken before or after tax, in a similar manner to a pension deduction?

opinions4u

Leviathan2009 wrote: »

I am thinking about starting a regular deposit in my local credit union. I am aware that a number of credit unions can arrange for a payment to be taken straight from a wage.

My question is whether the contribution is taken before or after tax, in a similar manner to a pension deduction?

No chance! Any deduction would be after tax.

You don't get tax relief for saving with a credit union.

Ian_W

opinions4u wrote: »

You don't get tax relief for saving with a credit union.

Quite true, yet, unless this has changed recently, for some arcane reason the "Dividend" on savings is paid without tax being deducted. So I suspect many CU members don't pay tax on the equivilent of their savings interest.
However, unless you've specific reason to use a CU their rates are often pants. Best regular savers are HERE, how does the CU compare?

opinions4u

Ian_W wrote: »

Quite true, yet, unless this has changed recently, for some arcane reason the "Dividend" on savings is paid without tax being deducted. So I suspect many CU members don't pay tax on the equivilent of their savings interest.

Although they should declare it and pay tax on it at their highest rate!