A credit union, also known as co-operative, is a not-for-profit organisation which is set up by members that have something in common – whether it is the area they live in or work.

Here are seven benefits of choosing a credit union:

1. Credit Unions encourage you to save regularly with a variety of savings accounts and by doing so enable you to keep on top of your finances and access affordable credit.

2. Credit unions offer loans with affordable rates of interest that are way lower than payday and doorstep lenders. This is because they aren’t profit-focussed but just need to cover their operating costs.

3. If your employer is in partnership with a credit union, you can save and repay your loan directly from payroll.

4. Credit unions make saving regularly easy. In addition, their rate of return on savings accounts is higher than at a bank.

5. As credit unions are co-operatives and run by their members for their benefit, any profits that have been made will be shared as dividends on their savings. The dividend is agreed at the credit union’s AGM each year.

6. Credit unions often offer loans to those who may struggle to secure one from other mainstream lenders.

7. All money saved in a credit union is protected by the Financial Services Compensation Scheme (FSCS) of up to £85,000 per person and may never be lost.

Next steps:
Become a member of Hertsavers Credit Union today.
Already a member? You can refer a friend and earn up to £50 per referral. Find out more

References:
https://www.moneysavingexpert.com/loans/credit-unions/
https://www.findyourcreditunion.co.uk/about-credit-unions/
https://www.investopedia.com/financial-edge/1211/6-benefits-of-using-a-credit-union.aspx
https://www.experian.com/blogs/ask-experian/what-are-the-benefits-of-a-credit-union/

Hertsavers Credit Union has teamed up with Illegal Money Lending Team (IMLT) to promote their Payroll Saving and Loan Plan across Hertfordshire to ensure that employees who work in organisations, that are part of our Payroll Deduction Scheme, have a safe and reliable place to save and be protected from loan sharks.

Did you know that:

• 53% of loan shark victims are in employment
• The average loan shark loan is £3,500
• 38% of victims have a household income of over £20,000
• 79% of loan shark victims are perpetually worried or stressed about their loan.

In order to protect the employees from illegal money lending, we request that staff be allowed to save with us through a deduction from their payroll which is already available to: DHS staff; many police forces; postal workers; firefighters; NHS staff and many other employee groups.

If you or someone you know has been intimidated into taking an illegal loan from a loan shark, please get in touch with us on office@hertsavers.co.uk.

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