The amount of protection for your savings in East Renfrewshire Credit Union is up to £50,000. This protection is covered by the Financial Services Compensation Scheme, of which we are members.
In these troubled times with bank collapses and bail-outs happening worldwide on a what seems a daily basis, members can be assured that East Renfrewshire Credit Union is open for them as always.
We have no sub-prime mortgage loans, no investments in dodgy mortgage-backed securities, and we don’t need loans from wholesale money markets in order to keep operating. Simple savings and honest, affordable loans are what we do, and we don’t take risks with your money.
As a co-operative we operate solely for the benefit of our members and not for private shareholders or fat-cat bosses, so we’re still making loans to members too - no credit crunch here.
So if you’ve got savings tied up in one of the big banks and you’re looking for a different type of home for them, then East Renfrewshire Credit Union could be the place for you - a place where your money is invested safely, ethically and locally.
Because you’re a member and not just a depositor or customer, you’re in control too - every member has the right to attend the AGM and vote for Directors and other Officers, all of whom are volunteers and are members just like you.
And even if you choose a different place for your money do please remember that savings are protected up to £50,000 with each institution - so if you’re lucky enough to have more than that in cash, then spread your money around, and make sure that the different savings brands you’ve chosen are separately protected by the compensation scheme, and are not all part of the same bank!
The Association of British Credit Unions Ltd. (ABCUL) has moved to reassure credit union members who may be concerned about the safety of their savings in credit unions as financial turmoil amongst mainstream institutions continues.
ABCUL Chief Executive Mark Lyonette said:
As credit unions do not rely on borrowing from other banks or the international money markets and are not in the business of buying up the debts of other financial institutions they are well sheltered from the economic turmoil which is causing worry for so many people at the moment. Credit unions use the savings of their members to make loans to other members and are very self contained institutions.
Directors are volunteers who are elected from the membership of the credit union, by the membership of the credit union so only have the well being of the credit union and its members to consider – their decisions are not influenced by the demands of external shareholders or short term fluctuations in share prices.
The events of the last few weeks have given enormous weight to our belief that mutual and local financial services such as credit unions are the way forward in making sure that individuals and families have safe and secure financial services.
Savings in credit unions are covered by the Financial Services Compensation Scheme in the same way as deposits held in banks and building societies are. The extra compensation limits which have recently been announced are to be welcomed in helping people have peace of mind that their hard earned savings are protected.
07 September 2010
