Types of savings
Savings can be held in either your main account or a sub-account. If you have a loan, the savings in your main account would normally be held as security against the loan. Savings as shares in a Credit Union are a better way to save. You are not just another customer but an active member of a highly successful financial co-operative. Yes, you have a share in the ownership of the Credit Union. Along with having a say in the operation of the Credit Union you also earn dividends.
Saving regularly and borrowing sensibly are important elements to remember when it comes to managing your money. Saving regularly gives you financial security, independence, peace of mind and an attractive return on your savings.
It is through the accumulation of members’ shares that the credit union has the ability to grant loans. As shares act as a security against your loans, you are advised to continue to save while repaying a loan to ensure that you are well placed if you need to borrow a higher amount on the next occasion.
Benefits of Credit Union Savings
- Savings balances over and above any loan you may have are available to you to withdraw on demand.
- High dividends for savings available on demand, you will not get a higher return at the same level of risk.
- Free life cover on saving (subject to terms and condition).
- There are no transaction charges or fees.