Types of Accounts
What type of savings accounts does the credit union have?
Lucan District Credit Union has the following savings options:
Share accounts are the core savings account of the credit union. Savings are called shares which means that you own a share of the credit union and you are entitled to vote at the Annual General Meeting (if you are over 18). Share accounts do not attract any interest but are included in the annual dividend payment when a surplus is distributed. As with regular companies, the size of the dividend you receive will depend on the surplus made and the amount of shares that you have saved.
Share accounts are covered by life savings protection at no cost to you. This means that your savings could be up to doubled should you die (This depends on your age when saving. So the earlier you start the better).
For added peace of mind the government guarantee on all savings up to 100,000 applies to credit unions too.
Note: Shares saved at the time of taking out a loan are attached to loans as security. Attached shares may not be withdrawn if they are at or below the loan balance. Attached shares may be taken against a loan where a loan is in arrears.
You may open a separate deposit account. This is different than a share account in that it can earn interest but does not attract dividend. You cannot borrow against a deposit account as these accounts are not attached to loans.
Note: The interest rates are extremely low at present. We paid 0.25% on deposit accounts in the financial year ended 30th September 2015. This compares favourably with current bank deposit rates.