What are the benefits?
Flexible savings to suit individual needs:
- You can save as much as or as little as you like, as often as you like.
- You can save towards special occasions such as Christmas and holidays or towards buying furniture, making repairs to your home, education or health expenses.
- Any profit made by the credit union is paid back to the membership in the form of an annual dividend. This can be up to 8%.
- LSCU also offers the facility to receive electronic benefit payments through our ‘Easy Access Account’.
Affordable loans:
- Interest rates on credit unions loans cannot by law increase above 2% per month (26.8% APR). The typical rate for loans with LSCU is just 1% per month (12.7% APR).
- Interest is calculated on a daily basis and on the reducing balance of your loan.
- There are no charges or penalties if you want to pay the loan off early.
This table illustrates how much you would pay each month for a loan at interest of 1% a month:
| 6 months | 12 months | 24 months | 36 months | |
|---|---|---|---|---|
| £100 | £17.25 | £8.88 | £4.70 | £3.33 |
| £500 | £86.27 | £44.42 | £23.53 | £16.61 |
| £1000 | £172.54 | £88.84 | £47.07 | £33.22 |
To read the chart, choose how much you would borrow from the left, and the length of time you would like to repay the loan over from the top. For example, if you borrowed £500 from the Credit Union and repaid it over 12 months, the monthly payment would be only £44.42!
Because you only pay interest on the amount you owe, a credit union loan can work out even cheaper than you think. Here’s some illustrations:
| Amount borrowed | Repayment period | Total cost of loan |
|---|---|---|
| £100 | 6 months | £103.50 |
| £500 | 12 months | £533.04 |
| £1000 | 24 months | £1129.68 |
Savings and Loan Insurance at no extra cost to the member*
In the event of your death, your savings will be doubled* and paid to your next of kin. The loan protection ensures that the ‘debt dies with the debtor’ relieving your family of the burden.
*Conditions apply
Credit Unions are a safe place to safe and borrow money
Like other financial institutions, credit unions are regulated by an Act of Parliament – Credit Unions Act 1979 and Section 2 of the Industrial and Provident Societies Act 1965. In addition, credit unions are regulated and monitored by the FSA who also have to approve all the members of staff and volunteers involved in the running of the credit union.
Credit Union members also benefit from the Financial Services Compensation Scheme, which protects your savings in exactly the same way as bank deposits. The first £2000 of your savings is insured 100%, plus 90% of any savings above that level. Your money is safe!
Think this sounds good? Find out how to join Lambeth Savings & Credit Union now, or fill out our online membership enquiry form to receive a membership application in the post.