Savings at Longford Credit Union Limited
We all know the merits of saving money, either for something specific or for that “rainy day”.
The big difference between your credit union and any other savings account is that members own the credit union. Our Philosophy has always been to look at things differently.
The core idea is this:
- Your savings with the credit union are called ‘Shares’
- Each share you hold is eligible for a dividend should your credit union declare one
- In the event of your death your credit union savings are insured - subject to terms, conditions and eligibility criteria - at no direct cost to you
- No matter how much you have saved, all members aged 16 or over, have equal voting rights on issues affecting their credit union
Each and every €1 you save is equivalent to 1 share in the credit union. If you begin to save regularly it won’t be long before you build up a healthy balance.
Some of the many benefits of saving with Longford Credit Union:
- Easy access to your money once it is not used as security against a loan
- No hidden charges or fees on any transactions
- Life savings insurance for eligible members (see more information below)
- Nomination of account proceeds (see more information below)
When you save with us you are also building a history which will be taken into account in the future should you wish to apply for a loan.
If we accrue a surplus, the credit union may declare a dividend following the end of the financial year. If so, you will get a return on each share you hold. In the meantime, the money you’re saving is being used to provide loans to your fellow members.
You can withdraw money whenever you want - provided the money is not pledged as security on a loan and subject to credit union rules.
Dividends and Deposit Interest
Dividends (similar to interest on a deposit account) may be paid on share accounts at the end of the year. The amount of dividend paid will depend upon the level of savings in the account throughout the Credit Union financial year and the rate of dividend declared by the members of the Credit Union at its Annual General Meeting.
- Deposit interest retention tax (DIRT) is automatically deducted from dividend and interest earned on savings in the Credit Union.
- The liability to tax applies only to dividends and interest received from the Credit Union and not on actual savings.
- DIRT is applicable to all accounts including those of children. There are however certain limited exemptions where the payment of dividend and interest can be paid without the deduction of DIRT. This applies:
- In the case of a member who is over the age of 65 (or whose spouse is over the age of 65) and whose gross income is less than the relevant annual exemption limit. An application must be made to the Credit Union using a Revenue declaration form (DE1).
- In the case where a member or their spouse is permanently incapacitated. You must apply directly to the Revenue Commissioners who, on approval, will notify the Credit Union.
Nomination of your accounts
- The nomination must be in writing and signed by the nominator, the nomination can be revoked or varied at any time by the nominator during his lifetime, again this must be in writing.
- The nomination shall not be revocable or variable by the will of the nominator or by any such codicil to the will.
- The marriage of a member shall operate in the revocation of any nomination previously made by the member before the marriage.
- A nomination will be revoked by the death of the nominee before the death of the nominator.
- The amount that can be transferred under a nomination is currently set at a maximum of €23,000.
Nomination forms are available in all our offices.
Make sure your nomination is up to date.
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Savings in the Credit Union are protected in a number of different ways.
The Savings Protection Scheme - SPS
The Irish League of Credit Unions Savings Protection Scheme protects the member’s savings by ensuring that credit unions are financially and administratively sound and by providing remedial help to any credit union which shows signs of weakness in these areas. Participation in this scheme is mandatory on the credit unions affiliated to the Irish League of Credit Unions. There is no direct cost to members for the participation of Longford Credit Union in this scheme.
Deposit Guarantee Scheme - DGS
Credit Unions in the Republic of Ireland are covered up to €100,000 by the Government Deposit Protection Scheme which is administered by the Central Bank of Ireland. This is a scheme that can provide compensation to depositors if a credit institution is forced to go out of business. It covers deposits held with banks, building societies, and credit unions.
Members’ savings are insured through Life Savings Insurance (subject to certain terms and conditions). For more details, visit the Insurance section..
Under Credit Union Rule 19 if your account becomes inactive for 3 years and we are unable to contact you within that period it may become a dormant account. It is in your own interest to keep it active by conducting regular transaction.
The account may be reactivated by conducting transactions and supporting it with photographic I.D. e.g. passport/drivers licence/birth certificate for children and confirmation of address (not more than 3 months old) e.g. utility bill/revenue documentation.