Unit 5 - Credit Unions

At the end of this unit, students will be able to: Understand the main principles of Credit Unions How credit unions are different from other financial institutions Know how to become a member of the credit union

What is a Credit Union? Financial Cooperative Owned and controlled by members Not-for-profit Surpluses returned to members or go to improve services Members hold ‘common bond’

Type of Accounts Standard account in a CU is called a ‘share’ account Return paid depends on the financial performance of CU After end of financial year, a dividend may be paid For example, if a 2% dividend is paid, all share account holders receive a 2% payment All share account holders receive the same rate of dividend Some CUs also offer deposit accounts which pay a set interest rate

1. Total savings held by CUs for people in Ireland is almost €14 billion 2. Over 470 credit unions in ROI and NI affiliated to the Irish League of Credit Unions. 3. CUs are the only financial institutions in Ireland governed by volunteers. 4. Over 9,500 volunteers in Irish CU movement and 3,500 professional staff Quick Facts

5. With 3.3m members on the island, Ireland has one of the highest levels of CU membership worldwide 6. Irish CUs have set up a Credit Union Foundation which supports the development of credit unions in Eastern Europe and Africa 7. CUs are “not-for-profit” - many services are provided 8. By owning just one share, you become a shareholder. Members vote on matters affecting the CU at AGM (must be aged 16 to vote)

How does a CU work?

Joining a Credit Union To join a credit union, the following will be required. Photo Identification - usually in the form of a passport or drivers licence. Proof of Address - in the form of a recent utility bill, letter from Government etc Personal Public Service (PPS) Number – This is unique reference number that helps people access social welfare benefits & public services. The CU will also verify that you hold the ‘common bond’.

Credit Union Difference

Your Local Credit Union What do you know about your local credit union? Location Number of members Friends / family that work/ volunteer in the CU Services that are offered Sponsorship of any local teams / community events