Credit unions

Credit unions are community organisations run by and for their members.

Key features of a credit union are:

• People who save or borrow through one must live in the same area
  Credit unions are run on a ‘not for profit’ basis, so instead of paying a profit to shareholders, they use the money they make to reward their members and improve services
  They are regulated by the Prudential Regulatory Authority and the Financial Conduct Authority. The FSCS savings protection limit for consumers is £85,000. If you have more money than the limit, some of your money will be at risk if your bank, building society or credit union fails.

Why go to a credit union?

Credit unions operate with three main aims:

• To provide loans at low rates
  To encourage all members to save regularly
  To help members in need of financial advice and assistance.

There’s a cap on the amount of interest they can charge on their loans of 3% a month or 42.6% a year APR.

Find your local credit union here, and for more information, take a look at the great videos below.