| General
Joining
Savings
Loans
Other Services
Savings
Q. Do all members save
in The Lough Credit Union?
Q. Does one have to save?
Q. What are the benefits
of savings?
Q.
Are my savings secure?
Q.
What are shares?
Q. What are Dividends?
Q. Does one have to pay tax on their interest?
Q.
What is Life Savings Insurance & its Benefits?
Q. What are the savings limits?
Q. Do all Members save in
The Lough Credit Union?
A. Yes.
Saving is a condition of membership. However, you can withdraw your
savings as
long as you do not have an outstanding loan.
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Q.
Does one have to save?
A. Members are encouraged to
continue saving at all times, even when
repaying a loan.
When you save on a regular
basis no matter how small the amount, you will be surprised how quickly
your savings/shares can grow.
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Q.
What are the benefits of savings?
A. Regular saving with a Credit Union has the benefit
of:
·
Secure
place
to save
·
You
are
included in a Savings Protection Scheme
·
Excellent
return on your savings (dividend)
·
Interest
on
savings is calculated on a daily basis
·
Easy
withdrawal of your savings (once not pledged against a loan)
·
Life
Saving
Insurance for eligible Members (see details below)
·
Eligibility
to
borrow
·
No hidden
charges
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Q. Are my savings secured?
A. All Credit Unions affiliated to The Irish League of
Credit
Unions are secured in the following ways:
The Irish League of Credit
Unions has a SavingsProtection Scheme (SPS) of €110 million which is
available to proactively
intervene to protect members’ savings by making available financial
assistance
to help any Credit Union which may experience difficulties.
Credit Unions have a savings
guarantee from the
government of €100,000 per member per Credit Union.
Ireland has the second highest
level of guarantee in the EU.
As
Credit Unions do not borrow money from the
wholesale market but use savings available to them from their own
savers they
are a much saver place to save money.
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Q. What
are shares?
A.
Every €1 saved is equivalent of 1 share in a Credit
Union. A minimum saving of 10 shares (€10) is needed to keep the
account open.
You should save regularly to build up a savings history. Each share is
eligible
for a dividend at the end of the year. The more savings held by the
Credit
Union, the more funds are available for loans to Members
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Q. What are
Dividends?
A.
Savings are used
to make loans to members. The interest received from loans and
investments is
used;
·
To
pay expenses
·
To
build up reserves (capital)
Excess income over
expenditure
and allowing for transfer to reserves is distributable to members as a
dividend. The rate
of dividend varies
from year to year and the dividend is applied to members’ accounts
after the
AGM.
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Q. Does one have to pay
tax on their interest?
A. The interest or dividend
earned
on credit union savings is subject to tax, depending on the savings
option you
have chosen. Some options may suit you better than others.
· If you wish to use a Regular Share Account, you are required
to inform
the Revenue Commissioners of your dividend income, which will be taxed
at your
marginal rate - either 0%, 23% or 42%.
· If you use a Special Share Account, The Lough Credit Union
will
automatically deduct DIRT at 23% from any dividend you receive on
shares in
your Special Share Account.
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Q. What is Life
Savings Insurance & its Benefits?
A. Life Savings Insurance provides cover
on savings to all eligible Members.
In the event of your death the person(s) nominated by you will receive
a
financial sum. The amount that they receive depends on your age and how
much you
have saved in The Lough Credit Union over the years. Life Savings
Insurance is
provided by The Lough Credit Union, there is no direct cost to you.
One is entitled to Life Savings Insurance cover if you join the Credit
Union
before the age of 70 years and are actively at work, and if not working
are in
good health (terms and conditions apply).
The Lough Credit Union provides Life
Insurance cover to thesavings of all eligible Members.
The
maximum insurance benefit is €7700 and the scale of cover is as follows:
Savings made before 55th
Birthday = 100% Cover
Savings made between 55th
& 60th
Birthday = 75% Cover
Savings made between 60th
& 65th
Birthday = 50% Cover
Savings made between 65th
& 70th
Birthday = 25% Cover
Any savings lodged after your 70th
Birthday has no
insurance cover, but savings lodged before 70th
Birthday will carry
the above cover percentages, provided that the savings are not
withdrawn.
The Insurance claim is processed after the
death of the Member.
The Insurance Company providing this valuable
service is owned by
the Credit Union Movement in Ireland.
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Q. What are the savings limits?
A.
A
member can hold a maximum of €XXXX in their account at any time.
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