Credit Unions, better too save in?

Daimzer

Iv seen online that a good saving suggestion is too join a credit union, what do you think?

Daliah

It entirely depends on how much interest they are paying, if they are indeed paying any at all. Credit Unions are mainly very cagey about their interest rates, and tell you after the end of their financial year whether they'll pay you something. They also have a higher than usual rate of failures, so if you do decide to put any money into a Credit Union, make sure the account has FSCS protection.

eskbanker

Daimzer said:

Iv seen online that a good saving suggestion is too join a credit union, what do you think?

'Good' in what sense?  As above, many (most?) compare savings products based on interest rate, but other things may be important to you, so, for example, supporting a local organisation that's likely to be relatively ethical may tilt you towards a credit union....

Albermarle

With a credit union , there is restricted membership. This is usually to a geographical area and/or to local institutions and professions , like the local NHS hospitals for example .
No savings interest is paid but normally you would get a dividend each year, as long as their finances can afford it. There is usually a limit on how much you can save in total of £10K or £15K
As eskbanker says you might wish to save with them as you are directly funding loans for local people at reasonable interest rates , rather than saving with Megabank Corporation.
Credit union: community savings & loans - MoneySavingExpert

pafpcg

Be careful and do your research: check it's a proper credit union with clear special-interest objectives or a local base.  FSCS protection for any savings is essential as some of us discovered back in 2014-15 when an outfit called DotComUnity Credit Union offered a cash ISA with market-leading interest rates.  There's a thread on this forum that's 130 pages long covering its rise and eventual demise (https://forums.moneysavingexpert.com/discussion/4938603/dot-comunity-credit-union-isa/p1). 

But the "bad apples" are very much the exception and credit unions are, in general, to be applauded.