# Credit Union Savings Protection ?



## mmmmm (17 Jul 2008)

Hi,

Can anybody shed some light on the credit unions savings protection scheme. I got this off the website but it doesn't actually mention what amount is covered. 

"Credit unions affiliated to the Irish League of Credit Unions are members of the Savings Protection Scheme. 
Also, members’ savings are insured through Life Savings Insurance (subject to certain terms and conditions). "


Thanks!


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## ClubMan (17 Jul 2008)

Are you talking about the life assurance cover which (if I recall correctly?), on the death of the _CU _member, clears any loans and pays out the deceased member's deposits and/or shares a second time to the next of kin OR are you talking about some form of deposit protection scheme which protects _CU _members' money in the event of a particular _CU _going bust?


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## irishlinks (17 Jul 2008)

Re: Deposit Protection -
 There is a trade body, the Irish League of Credit Unions (ILCU), which runs a stabilisation fund to provide discretionary support to troubled credit unions. It _might_, _at its discretion_, compensate savers up to €12,500.

The scheme, which is called Savings Protection, is unregulated and only open to participation of its member credit unions. Some credit unions aren’t members and do not participate in the scheme.


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## mmmmm (17 Jul 2008)

irishlinks said:


> Re: Deposit Protection -
> There is a trade body, the Irish League of Credit Unions (ILCU), which runs a stabilisation fund to provide discretionary support to troubled credit unions. It _might_, _at its discretion_, compensate savers up to €12,500.
> 
> The scheme, which is called Savings Protection, is unregulated and only open to participation of its member credit unions. Some credit unions aren’t members and do not participate in the scheme.


 

Hi! thanks for the replies- I'm talking about a deposit protection scheme- Thanks for info- I'll hav to try get some answers off my particular branch. Although, would I be right in saying that its unlikely a CU would go under?


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## irishlinks (17 Jul 2008)

Why risk it? The interest rates aren't that great are they?


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## Jaffser (3 Nov 2011)

Depending on each Credit Union, Interest Rates vary. One good point though, although the Financial Regulator (Elderfield) and Credit Union Registrar (O'Brien) are limiting the Credit Union ability to do so, is that Credit Unions are more lenient than other credit institutions when dealing with slow payment off loans due to change in personal circumstances and reduction in disposable income. Some people do take advantage of this fact however but ability to pay and willingness to pay are completely different factors involved in any debt collection protocols. On a local level, these differences are easier to spot.


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## CUJimmy (9 Nov 2011)

Deposit rates can be quite good in some credit unions, just ask in you local cu


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## cargo 121 (10 Nov 2011)

*CUs covered up to 100,000*

The government covers savings in all financial institutions including CUs up to €100,000


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## Complainer (10 Nov 2011)

CUJimmy said:


> Deposit rates can be quite good in some credit unions, just ask in you local cu



You can ask all you like, but they can't tell you the deposit rate until the end of the year - right?


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## ClubMan (10 Nov 2011)

Complainer said:


> You can ask all you like, but they can't tell you the deposit rate until the end of the year - right?


Can they not tell you the deposit rate up front but cannot tell you the dividend rate until the end of year _AGM_?


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## Slim (10 Nov 2011)

ClubMan said:


> Can they not tell you the deposit rate up front but cannot tell you the dividend rate until the end of year _AGM_?


 
Not usually as deposit rate is set in September just before year end. There is nothing to stop them setting the deposit rate at the beginning of the year though but they usually wait so as not to pay more on deposit than dividend will be. S


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## ClubMan (11 Nov 2011)

So the deposit rate will be known now for another 10 months but the dividend is only declared at (financial or calendar?) year end?


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## Slim (11 Nov 2011)

ClubMan said:


> So the deposit rate will be known now for another 10 months but the dividend is only declared at (financial or calendar?) year end?


 
No, the deposit rate set in September 2011 is for the year ending September 2011. The rate for 2011/12 may not be known until September 12. There is nothing to stop CUs declaring the deposit rate but caution usually wins out. Dividend only proposed at AGM for year past and must be agreed by members at AGM. Members cannot declare a dividend rate higher than that proposed by the board.


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## ClubMan (11 Nov 2011)

Ah - OK - I didn't realise that the rate was set "in arrears" like this.


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