One of the main aims of a Credit Union is to encourage members to develop the habit of regular savings. For the individual, the advantages of building up savings are obvious. These savings may be planned for something in the future or just for the rainy day which comes to so many of us. In Credit Unions the extra benefit is that your savings will be used to make loans available to other members and to yourself.
Each Credit Union, within legal limits, decides on the maximum amount of savings that each member may have. In Pennyburn Credit Union the present limit for total shares is £20,000.
Eligible deposits in Pennyburn Credit Union are covered by the Financial Services Compensation Scheme (FSCS). For more information see http://www.fscs.org.uk
Pennyburn Credit Union offers two different shares (savings) account, Main Shares and Easy Shares.
The Main Share account is your main credit union account, the share limit on this account is £20,000*. The shares in this account may be used as security against any loans issued.
Easy Shares is a separate sub account that can be accessed at anytime and not pledged against any loan and this account enables members to save for any occasion and budget more effectively. The limit on Easy Shares is £3000*
*£20,000 total maximum shares limit across all accounts
The Credit Union provides Life Savings Insurance cover on savings of eligible members. Click here to find out more.
All members are encouraged to complete a Nomination of Beneficiary Form. Click here to find out more.
While the rules provide for a waiting period for the withdrawal of savings, most Credit Unions, including Pennyburn, allow withdrawals without such waiting period. A member who has no loan account may withdraw part or all of his/her savings at any time during normal office hours.
When a member is granted a loan in excess of the amount of savings at that time, those savings become pledged and may not be withdrawn. Any balance in excess of the loan amount may be withdrawn from time to time.
It is the policy of Pennyburn Credit Union that any savings which are lodged after a loan was granted may be withdrawn provided that the loan account is not in arrears.