# credit union advantages



## gussy (21 Feb 2012)

I have 26k in the credit union and I am wondering if that is too much? I know there is a low rate of interest but what advantage is there in being in the credit union. I was aleays under the impression that if you passed away you share would double to your next of kin or if you had a loan it would be wiped out. I need to know the answers to this as I am getting 1.5 on my shares which is pretty low. Please people who know for a fact what happens with the shares will you answer this for me


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## ontour (21 Feb 2012)

Not every credit union handles  insurance in the same way so the simple answer is that you should check with your credit union to understand how they charge for insurance and the details of the benefits.

You will find information on the insurances provided by the Irish League of Credit Unions in the following links:  [broken link removed],  Savings Protection, Death Benefit.  Not all credit unions are members of the ILCU so this may not apply to your credit union.

With the credit union that I am a member of the 'clear the loan, double the savings'  system applies but with monetary caps and age limits.

You could definitely get a higher rate of interest by putting the money elsewhere.  People leave money in credit unions for various reasons: laziness, sene of community, access to savings locally at convenient times,  ability to access credit union lending facilities etc.


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## STEINER (21 Feb 2012)

you are correct about the shares multiplying on death but every CU has a limit on this.  My CU will pay death benefit on 20k max of shares so long as they are all saved before age of 70 I think.  Loan protection also pays off a loan on death and there are age conditions and max limits also.

1.5% is good for a CU dividend these days but you would get higher interest in most banks.

You need to decide if better annual interest is better for you rather than your family getting a bigger payout if you die which doesn't actually benefit you.


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## gussy (21 Feb 2012)

*credit union advantage*

steiner ontour thank you both for your reply I will go ask the credit union what the story is. I will reply to what they say to me and let you know


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## rosey (21 Feb 2012)

I can't see the benefit of having so much money in the credit union- the interest is very low on saving. The benefits I think of a credit union is if you save regularly you will be able to borrow loans at low interest- many people do this who get loans on a regular basis- particularly people on low income- they save regularly in their local credit union where they become known . People then often borrow for Christmas, for their annual holiday, for a car perhaps and pay back every week. As well as paying back their loan, members are encouraged to keep saving- i.e shares. It works really well like this but as a place for putting your savings I would definitely say there are way better places for return on your money.


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