Saving Money

Shares in a credit union - Savings To set up a means whereby members can save with security on a regular basis. Only Members may save. Without savings the credit union cannot function. Saving money is not easy. The credit union helps you by encouraging the habit of saving. If you develop the habit of putting some money by in the credit union on a regular basis, saving will be less difficult. Many members have experienced the satisfaction and sense of well-being at having sufficient credit union savings built up when the unexpected need of one kind or another arises. Regular small savings accumulate to large amounts in a surprisingly short period of time.

Return on Shares Savings are used to make loans to members. The interest from loans and investments is used (a) To pay expenses (b) To build up reserves (capital) and (c) Any remainder returned to members by way of dividend. The rate of dividend may vary from credit union to credit union and will be between 0% and 8% The benefit most appreciated by the saving member is the entitlement to apply for a loan for any useful or productive purpose.

Share Withdrawals
Members can withdraw their shares (savings) at any time, so long as there is no loan secured against them.  However, members are encouraged to leave their savings balance intact so that their savings;

•  Continue to earn a dividend
•  Continue to benefit from the free Life Savings Insurance Protection
•  Continue to maintain their credit worthiness and capacity to borrow

Thus, it may be wiser for you not to withdraw your savings, but instead to take out a loan with repayments suited to your financial circumstances.