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Savings

Saving with Millom & District Credit Union Ltd

• Whether you are saving for a "rainy day" or for something in the future, regular saving is the best method.
• Regular saving with a Credit Union is an even better idea. At your Credit Union you are a member and owner of a successful financial co-operative.
• Each share you hold is eligible for dividend when declared. This is your return on your shares and is paid by your Credit Union out of surplus.
• You can withdraw your shares provided they are not pledged against a loan. However, you are encouraged to keep your savings intact.
• Credit Unions shares are used to make loans to other members.

Credits Unions are unique they pay for an Insurance policy free of charge to its members. If you have a loan the loan will be paid off. Your shares will be paid to the beneficiary you named together with a life insurance payments up to 50% of your share value.

Safe Savings

• There are many ways that your savings are protected within your Credit Union
• A group of members know as the Internal Audit Committee ensures that the Credit Union is running safely and taking care of members money
• An auditor carries out an annual inspection of the Credit Union’s business
• The Credit Union is regulated by law to maintain an insurance policy to protect the Credit Union against fraud or theft

Financial Services Authority (FSA)

Credit Unions banks and building societies are supervised by an organisation called the Financial Services Authority. Credit Unions are required to send financial reports to the FSA. The FSA is able to place restrictions on a Credit Union’s business, if it has reason to believe that a members’ savings may be at risk.

Financial Services Compensation Scheme (FSCS)

The FSCS provides a final safety net if a bank, building society or Credit Union should collapse. If the worst should happen, the Financial Services Compensation Scheme is able to provide compensation, to ensure that you do not lose all your savings.

The Financial Services Compensation Scheme provided the following levels of compensation on savings:

• 100% compensation for the first £2000 of savings
• 90% compensation for the next £33,000 of savings