# Understanding credit union accounts



## Cat Woman (29 Apr 2008)

Hi folks,

I have a credit union account and am trying (and failing) to understand the financial report compiled by the credit union. On the very last page of the report (re: Dividends Payable), it says: "The directors recommend the following distribution: 



Dividend on Shares:   1.5%


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## Cat Woman (29 Apr 2008)

Ok, that last post went a wee bit wrong. Here is the full one.


Hi folks,

I have a credit union account and am trying (and failing) to understand the financial report compiled by the credit union. On the very last page of the report (re: Dividends Payable), it says: "The directors recommend the following distribution: 


                            Rate         Current Year (€)
Dividend on Shares: 1.5%         84,163


Can I interpret the 1.5% as you would the AER on a deposit account?

If so, there doesn't seem to be much point in keeping my money in this account? 

Or is it a good idea to keep a certain amount of money in the account as credit unions are better for loans?

Thanks, 

Cathy


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## Slim (1 May 2008)

Cat Woman said:


> Ok, that last post went a wee bit wrong. Here is the full one.
> 
> 
> Hi folks,
> ...


 
Indeed, 1.5% is a low dividend. Credit Unions tend to be slower to raise rates. You will do far better on your deposit with an online account. BTW, they may be cheaper for loans than most banks. Might want to check out how much you can borrow, holding a certain amount in shares and move any excess to a higher yielding acc.

Slim

Slim


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## Cat Woman (1 May 2008)

Thanks Slim. I'm going to check with my credit union about how exactly they give loans. It might be worth my while to take most of the money out and maybe set up a regular direct debit to get a good saving history with them.

Thanks for the reply.

Cathy


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## jasconius (1 May 2008)

1.5% does seem low - check to see if there is any one off LOCU investment write down, but bear in mind that there are certain other benefits that you may get eg Loan could be forgiven if you die owing one, funeral benefit ,friendly service or weekly draws etc.

You certainly won't get these with a high street or internet bank.


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## Cat Woman (2 May 2008)

"one off LOCU investment write down"

I googled this but didn't get anything. Can you explain?


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## ClubMan (2 May 2008)

_Google _ and it might make more sense.


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## kaplan (5 May 2008)

Catwoman

Your post is intriguing as it appears to indicate the total dividend payable is €84,163.00 which at a rate of 1.5% means your credit union has about c€5.6m in total savings. This would rank as one of the smallest credit unions around. The 1.5% is the AER  which on balance is a poor return for the risks you are probably being exposed to. You might think about moving your money elsewhere. 

Kaplan


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