[Admin Deb]

Credit Unions

Credit Unions have become increasingly popular in the last few years. It is an organisation that is owned and jointly managed by groups of people for members who use its services.

Credit unions aim to help you take control of your money by encouraging you to save what you can, and borrow only what you can afford to pay.

Membership of credit unions can only be ratified if you have a coomon bond with other members, such as:

living or working in the same area
working for the same employer
belonging to the same trade union, church or other association.

Each credit union has its own "common bond" but will usually follow the same lines as above. As long as one member of a family meets that common bond and has joined the union, other family members can join as well.

Members run credit unions in a not-for-profit way. Credit unions can't lend all of their members money or invest money in risky ventures.

Services that are offered by credit unions include:

savings & loan accounts
free life or loan protection insurance

Larger credit unions even go so far as offering other services which can include:

cash-based child trust fund accounts
ISAs
funeral plans
mortgages
current accounts (usually like a basic bank account)
budgeting & debt management


Why choose a credit union

A credit union can help get your money under control. They may be more willing than a high street bank to help you if you are on a low income or have a bad credit rating. A credit union may suit you if you have difficulty opening a high street bank or building society account or you would just prefer a cooperative that does not need to make profits for its shareholders. You do normally receive interest (called a dividend) but it will really depend on the size of the union you join.

Borrowing money

Different unions have different lending methods. Some will lend as soon as you become a member, other will lend only after you have shown that you are able to save regularly (no matter how small the amount). Most will lend money on an unsecured basis for up to 5 years and up to 10 years for a secured loan. If you default on payments a credit union has the same rights as any other creditor to try to recover the money owed (see Debt & debt management thread). Credit unions cannot charge more than 2% interest a month on loans.

Ask your citizens advice bureau where you local credit union is or if you are working and are in a trade union - ask the representative. If you are working, your wages clerk should know your local credit union.


If you wish to start up your own credit union because there is not one in your neighbourhood contact one of the following:

ACE Credit union Services, 0191 244 4061 www.acecus.org

Association of British Credit Unions Ltd (ABCUL) 0161 832 3694 www.abcul.coop/page/index.cfm

Scottish league of credit unions 0141 744 5020 www.scottishcu.org

UKCreditUnions Ltd (UKCU) 01706 215082 www.ukcu.co.uk

[Admin Deb]

Bank Accounts

Co-Op Cashminder

A basic current account. Direct Debitting/Standing Orders to and from the account, Online banking, regular statements. Also a Visa Electron Debit card - enabling you to buy things using the card. Money can be paid in/withdrawn at any Post Office. No Overdraft available.

http://www.co-operat....urrentAccounts


Barclays Basic CashCard Account

A Basic Current Account but no online banking or debit card. Cashcard can only be used to draw money from the account but DD/SO facilities available. No overdraft available.

http://www.personal.....up&value=12866

NatWest Step Account

Another Basic Account with online, telephone & mobile phone banking available. Usual DD/SO facilities available. No Overdraft facility. Solo Debit card.

http://www.natwest.c....p-account.ashx
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[Admin Deb]

Post Office

A basic account that the DWP will use to enable you to have benefits paid into it.

NO other payments whatsoever can be paid in. Only benefits.

You cannot go overdrawn because the card can only be used at the post office to take out cash.
You cannot have direct debits or standing orders on this account.

No credit checks are made when applying for this account.

Statement every 3 months.

http://www.postoffic....catId=19400181

[Admin Deb]

Post Office

Post Office Christmas Club

This seems to be quite a good way to put money aside for Christmas.

Anyone can get this savings card.

* easy to pay your money into the ‘Club’ at any Post Office® branch
* join with as little as £5, up to a maximum £1,000
* put aside money as regularly as you want
* Christmas Club Card accepted at thousands of high street outlets

Once the card is up and running and you have initially opened it with a minimum of £5, you can save as much or as little as you want or can afford.
The Christmas Club Card is not a credit card, charge card or deposit product; nor is it a debit card linked to a current account. It is a prepaid card which means that money must be loaded onto the Card and used via participating retailers. Interest is not payable.
In October they will write and tell you how much you have saved & from November you can start spending it at places like River Island, Argos, Woolworths, HMV, JJB Sports, Halfords, Curry's, sainsbury's ........... and hundreds of other places. For a full list of outlets try here: http://www.giftvouchershop.co.uk/

If you want to, you can actually cash in your card but it will cost you £5. Otherwise you can have it converted into vouchers.

Just ask at you local PO for a christmas club card form. You fill it in & they will issue the card there and then.

http://www.postoffic....diaId=68000708
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