# Credit Union interest question



## VanZan (14 Jul 2008)

I had 20K in my credit union until the 12th June whereupon I transferred it to an Ulster Bank eSavings account.

My question is will I get interest for the months of January to June from the credit union at the end of the year? I tried asking at my local credit union branch but they couldn't give me a straight answer.

Thanks for any help.


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## steph1 (14 Jul 2008)

Savings in a credit union earn a dividend which is paid at the end of the year - usually after the Annual General Meeting.  The Board of Directors propose the dividend which is to be paid out e.g. 1.5 or 2% and this has to be put to the members at the AGM and voted on.

At the end of this year you should approach the credit union and as far as I am aware you will be entitled to some dividend on any savings you had before withdrawal.


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## declanh (14 Jul 2008)

Might not even need to approach them - it should be automatically paid to you - have a look at the statement from last year to see when it is due to be paid out, and when you receive notice of the AGM,  you'll have details of the proposed dividend for the coming year.


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## VanZan (14 Jul 2008)

Yup I think it was the second week of December that they paid it last year.


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## steph1 (14 Jul 2008)

Yes that would be right.  Most Credit Unions have their AGM's around November and December and once the dividend is voted on and passed by the members at the AGM it is usually credited to the person's account a week or so after that.  Have you actually closed your account entirely or have you left something in it.  If so the dividend will automatically be posted into your account.


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## VanZan (14 Jul 2008)

Thankfully I left €10 in the account to keep it open.


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## steph1 (14 Jul 2008)

Wel personally I think its handy to have a few hundred euro in the credit union.  Its very handy for small loans


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## VanZan (14 Jul 2008)

I didn't know that. But surely they'd only give you a loan equivalent to what you have in your account?


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## trebor (14 Jul 2008)

vanzan said:


> I didn't know that. But surely they'd only give you a loan equivalent to what you have in your account?



For your first loan yes, but up to 3 times your balance thereafter AFAIK.


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## Cabaiste (15 Jul 2008)

trebor said:


> For your first loan yes, but up to 3 times your balance thereafter AFAIK.


 
I don't think this fugure is set in stone. It would depend on a lot of factors but if you have a good savings / loan history the multiple could be alot higher.

In answer to the OPs question, you would be entitled to some share of the dividends assuming that there is a dividend paid this year. You should note that there is not a guaranteed return from shares in the credit union, only a distribution of their annual surplus in dividends. If there is no surplus then obviously no dividend.


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