ISA or Credit Union

Swampy3k

Howdy, looking for some financial advice here, years ago I opened a credit union account as in my family it's the "done thing" seeing as it gives out good flexible loan rates/ handy easy access for your cash etc. however I have never really used this service and have always squirreled away low amounts monthly amounts so I haven't really noticed it. but now I am thinking am I better off putting this money in the best rate cash ISA? seeing as your local bank nowadays tends to offer low interest rate loans as well... to be honest I don't know what interest I get on the CU.

Snooping4Value

You are probably better off finding the best rate ISA that suits your needs indeed. In fact, that might even be topped by current accounts which offer high interest rates depending on how much you have to deposit.

To make a comparison, you can start by telling us which credit union you are with and what savings account you have with them. And then we can take it from there.

innovate

ISA or credit union? Is comparing apples with pears. credit unions are providers, ISAs are products. credit unions are offering products, and whilst not all of them do, some do offer ISAs. ISAs are being offered by lots of providers. And there are many different flavours of ISAs.

With very few exceptions, credit unions are offering comparatively mediocre interest rates for savings. They will lend out at - probably - lower rates than a bank will do, but that is by no means certain. They might have lower relative costs than a bank has, but that is but no means certain. They don't have as strong a community of shareholders as banks have, that is pretty certain. Shareholders of credit unions might also generally feel more benevolent than shareholders in banks.

If you are looking for the best return for your cash savings, you probably won't be looking at credit unions. Though it is possible to find exceptions.

If you can tell us how much money you want to put away and for how long, we can comment with some suggestions. I have a feeling that the best return for you won't be in ISAs or in credit unions but in some other accounts.