# Is there any point in a CU account?



## zenbuffy (10 Sep 2013)

So I've finally opened a credit union account, because my mum (and other family members) have been badgering me about it for a long time. I've put in a small deposit, and I'm going to contact them and find out if I can somehow EFT funds in, rather than having to queue every week. I am also maintaining a regular saver account with PTSB and plan to continue doing so.

I'm just wondering if there's any real point in splitting out some of my regular savings to the CU? I can't find much useful, specific info about the benefits of a credit union vs. or in addition to a bank savings account these days, and the dividends paid seem small.

In a nutshell, what is the point of a CU account?


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## MrEarl (10 Sep 2013)

Hello,

In terms of payment of a dividend or interest on your savings, I would say there is zero point in having a Credit Union account.  Infact, I'd go half a step further and say that most of he Credit Unions have poor online facilities, less than perfect opening hours and a very poor selection of services - excluding basic savings & loans.

There is a trade off to be found somewhere (I'm not sure quite where to be honest), between less well trained & financially astute staff at the Credit Union (some of whom will be more focused on the community spirit than the possible risk of granting a loan, not up to speed with lending policies, or regulations) and the fact that generally, the staff in a Credit Union are very nice to you and will speak to you directly in person or by phone, unlike the situation with many of the Banks forcing you to use automated telephone services which often do little more than drive you nuts and take up far too much of your time without ultimately dealing with the reason for your call.

I like the concept behind the Credit Union movement, that of a semi-social ethos.  The theory of the local Credit Union being there to help its members, based on a commmunity (or similar) based infrastracture is excellent - but sadly, practised less and less these days.  Once upon a time, building societies were somewhat similar, but look whats happend to all of them (and I expect in time, Credit Unions will go much the same way) !

Other than to ensure you don't have all of your eggs in one basket, I don't think there is much point in a Credit Union account these days and fear there never will be again ......

Oh, btw, most Credit Unions should be able to provide you with sufficient details to permit you to transfer funds by standing order / occasional electronic payments ... just don't count on them offering you similar facilities, if you want your money back - it'll be a cheque & if your lucky on the day or night, they just might cash it for you while your there, but otherwise your waiting 6-7 working days for it to clear


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## wbbs (10 Sep 2013)

A lot easier to get a small loan in a credit union if you have a record of savings than in a bank these days.  Credit Unions in general look at lending slightly differently and is one of the few places people with small incomes can borrow.

I actually think they will become even more important in the future with lending tightening up everywhere, some are even giving the equivalent of small mortgages to enable people buy houses, especially now with lower house prices, it is giving a chance to people that banks wouldn't bother with.  Not necessarily bad lending just because a bank won't do it, banks are so cautious these days that very good proposals don't even get through 'Head Office', at least with your credit union the decision will be made locally by people who know the area and their clients, more the way it used to be before credit scoring and sending everything off the HO took over.


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## pudds (10 Sep 2013)

Some offer Death Benefit Insurance if you keep at least two or three hundred euro in them and in one case would pay out around €3.2k on death.

Interest on loans is paid on the outstanding balance which I believe is more advantageous than a bank loan.

I can transfer money in and out by EFT.

but all depends on your local c.u.


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## beachwalker (11 Sep 2013)

At a young age it probably not a high priority but most C.U also offer free loan protection insurance and free life saving insurance should you die.

Also in current climate it might be easier to get a car or education loan from a C.U than a bank.


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## RainyDay (11 Sep 2013)

MrEarl said:


> Hello,
> 
> In terms of payment of a dividend or interest on your savings, I would say there is zero point in having a Credit Union account.  Infact, I'd go half a step further and say that most of he Credit Unions have poor online facilities, less than perfect opening hours and a very poor selection of services - excluding basic savings & loans.


I'm not at all sure that this is true. My CU has excellent online facilities, so my salary is being paid directly to the CU, and then transferred out via standing order payments or particular payments entered by me. The opening hours are better than the bank, including Sat mornings and one late evening. They have good services, including travel insurance and foreign exchange cash that isn't available elsewhere.

If they had an ATM service, I'd be closing my current account and switching to the CU as my main account.


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## unsub (11 Sep 2013)

It all depends on your needs. the CU is great for the smaller type  loans say buying a car privately or an education loan and probably get a decision faster than your bank can give. Most CU's in urban areas have longer opening hours than banks and open on Saturdays.
You should be able to make "laser card" payments to your account over the phone, while most CU's have online facilities.

Credit Unions nowadays are like what bank branches were like 15/20 years ago,
there are tellers there that will deal with your money and will deal with your queries.

Remember Credit Unions are essentially community based cooperatives where your money goes to fund the loans etc of your friends, neighbours and relatives and their money will fund yours. Their only source of money is what their members give in both savings and loan repayments.


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## emeralds (11 Sep 2013)

Our local CU has wonderful staff who are happy to chat to customers - particularly older customers. That is not to say they would leave other people waiting but is is nice to pass the time of day with people. It's also unhurried and calm.


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## so-crates (11 Sep 2013)

RainyDay said:


> If they had an ATM service, I'd be closing my current account and switching to the CU as my main account.


My CU, Carlow, does have an ATM 

[broken link removed]

Though I will point out, the card they give you can only be used at the CU ATM.


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## Gaothfar (11 Sep 2013)

I have a CU account for my car. I pay in regularly and when the loan is paid off or nearly paid off I know it is time to change the car. As the shares side of my account has been accumulating over the years, it is now a nice little pot for a rainy day.

I love the point in repaying a loan where the shares are greater than the outstanding loan. It doesn't make any difference in repaying the balance of the loan but its nice to know I'm in the black.


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## MrEarl (11 Sep 2013)

RainyDay said:


> .... My CU has excellent online facilities, so my salary is being paid directly to the CU, and then transferred out via standing order payments or particular payments entered by me. The opening hours are better than the bank, including Sat mornings and one late evening. They have good services, including travel insurance and foreign exchange cash that isn't available elsewhere.
> 
> If they had an ATM service, I'd be closing my current account and switching to the CU as my main account.




All I can say is I'm jealous !

... I must also add, that I suspect your Credit Union is the exception to the rule and that I would think many of the circa 400 Credit Unions are no where near as "advanced" (more the shame)


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## RainyDay (11 Sep 2013)

MrEarl said:


> All I can say is I'm jealous !
> 
> ... I must also add, that I suspect your Credit Union is the exception to the rule and that I would think many of the circa 400 Credit Unions are no where near as "advanced" (more the shame)



It is Dundrum CU, a large-ish CU in Dublin, but I don't know how unusual it is. This crowd provide the software [broken link removed] and I can't see how they'd be surviving without a reasonably large customer base.

I have heard of a few CUs with ATMs. The guy in Dundrum told me it was just too expensive, and they had no plans to go down that road.


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## wbbs (11 Sep 2013)

My credit union has an atm and will soon have nationwide withdrawal facilities too.


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## SarahMc (11 Sep 2013)

My CU has online banking, good opening hours, real life cashiers and free savings and loan life insurance.


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## wmpdd3 (11 Sep 2013)

Mine has the same and are a pleasure to deal with. I've heard they are looking into a VISA DEBIT card that would not be an ATM card.


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## Gaothfar (13 Sep 2013)

I worry about CUs getting credit cards and ATMs. Will bank charges and all the other evils be far behind?


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## Fella (10 Dec 2013)

I save 100 a week into credit union direct from wages, reading posts here that credit union just deposit that money in bank and pay poor dividend, I've low 5 figure amount and no loans should I just withdraw and put in bank? Can't ever see myself needing a loan from them credit unions seem to be a place for loans . 
It's s civil service credit union not sure if they are any different.


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## wbbs (11 Dec 2013)

Depends if you can get a better rate elsewhere.   My local CU paid a dividend of 1.5% this year which isn't too bad for small deposits.   If you never think you will need a loan from them then I would just go for the best rate wherever you can get that.  Check the best buys here for instalment savings.


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## Gerry Canning (11 Dec 2013)

Cu V Banks.

My local Cu Letterkenny,
1. Friendly helpful staff.
2. An ATM Machine.
3. Have money to lend.
4 Will lend their money ,subject to good underwriting.
5. They are not bust, nor bailed out.
6. They are honest.
7. I can AFFORD to trust them.
8. Good customer friendly opening hours..
9. They even talk to people !!!


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