Following the launch of the Armed Forces Credit Union project in 2015, its use has gone from strength to strength among our community.
The take up continues to grow and there are now over 13,000 Members, with savings of over £4 Million, and lending of around £28 Million.
Armed Forces personnel can save and borrow directly through their pay, using one of 3 Credit Unions in the Joining Forces partnership.
For those new to Credit Unions, here are some facts:
Owned and run by their members, credit unions are not-for-profit financial cooperatives, providing a range of savings and loan products to their members.
Simple savings, sensible loans
Credit unions offer a range of easy-to-understand savings accounts and a variety of loans for their members.
All members of a credit union are required to save, with this money then lent to other members who may need to borrow through a choice of loan products designed to meet different needs-whether paying off expensive existing loans, paying for a holiday or buying a car.
Usually, credit unions charge much less interest on loans than many other lenders like banks or 'payday loan' providers and often have additional benefits such as no early repayment penalties, no hidden fees, no set up costs, life cover and much more.
Financial return on savings
As credit unions are not-for-profit, members get the benefit of sharing any of the financial surplus generated-meaning the money made from the interest charged on loans to members goes towards a dividend paid on members'savings.
Owned and run by their members
Credit unions are owned and run by their members, meaning there are no third party shareholders to pay from funds or money raised. So, money made can be used to reward their members or improve service to members.
Who can join?
Not everyone can join a credit union. It depends on who you work for or where you live.
Most credit unions welcome family members who must be living at the same address as the main member.
There are over 500 Credit Unions in the UK with over a million members, with this number increasing every day.
You're in safe hands
Not only are credit unions committed to giving you a really good return on savings, your money is also safe. The government-backed Financial Services Compensation Scheme guarantees to repay deposits up to a maximum of £85,000 in the unlikely event of your Credit Union 'going bust'.
Credit unions are also fully regulated by the Prudential Regulation Authority and the Financial Conduct Authority, both of which make sure credit unions are well run and can keep going for their members.
Note - Individual saving and borrowing is a private matter and we cannot recommend one provider over another.