# Is having €2k in a Credit Union a mistake?



## Treefrog2108 (21 Oct 2010)

Hi.

I have 2000 euro sitting in the credit union for about 2 years now. 

Im beginning to think its a waste to have it there and that I should take it all out and put in with an aib savings account I have. 

I have about 10,000 locked away for a year with aib. Would I gain much by moving it?

 Im not sure what kind of interest the credit union gives?

I initially left the money there in case i needed quicl access to it. But now i can lock it away for at least a year.
thanks


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## Marietta (21 Oct 2010)

Find out what divident you are getting on your credit union savings if it is unsatisfactory, well then you know what to do


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## Treefrog2108 (21 Oct 2010)

ok.
thanks for the reply.After googling for a while I believe the dividend will be quite low,maybe zero.I have to ring them and find out.I say I will just move it to a bank with better interest returns.
thanks again


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## dahamsta (21 Oct 2010)

Just remember that if you take your savings out, you won't be able to borrow from the credit union.


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## tiger (21 Oct 2010)

Yes, I keep some money in the local CU so that I have a second option when it comes to borrowing, rather than for the return I get.


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## Lightning (21 Oct 2010)

Treefrog2108 said:


> Hi.
> 
> I have 2000 euro sitting in the credit union for about 2 years now. Im beginning to think its a waste to have it there and that I should take it all out and put in with an aib savings account I have, I have about 10000 locked away for a year with aib. . Would I gain much by moving it.Im not sure what kind of interest the credit union gives.I initially left the money there in case i needed quicl access to it.but now i can lock it away for at least a year.
> thanks



Have you read the 3 best buy threads here?

I suggest you take your money out of the CU and out of AIB. You are not earning the best return for your money nor do you have your money in the safest places. 

What low rate are AIB paying you on your 10,0000 EUR for 1 year? Have you looked at the exit penality?


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## Treefrog2108 (24 Oct 2010)

Thanks for the tips ciaran. Im seriouslyconsidering moving my credit union money and reavulating the aib deposit.I cant remember what interest off hand Im getting on that. Im not good at making snap desicions so Ill sleep on it before I take action

thanks for the tips about borrowing too guys,I never thought about that,its something I will keep in mind.

appreciate the input from everyone.


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## gussy (27 Oct 2010)

Ciaran T.
My understanding of the c.u. is that should you have a loan out with them and the worst should happen to you {death} your loan would be wiped out. And if you did not have a loan but had shares they added a percentage to your shares for your next of kin. If either of these senarios are correct I think you would be mad to take your savings from the credit union it is an insurance policy.


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## Lightning (27 Oct 2010)

Most peoples biggest loan's are mortgages. Mortgages get wiped out on death via life assurance. 

I don't see any potential next of kin death benefits as a reason to stay with a low interest paying Credit Union.


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## gussy (27 Oct 2010)

Ciaran T.
a previous poster says that if you want a reasonable rate for loans the c.u is the best option. I am slightly concerned about your view of credit unions unless you can provide the details of the benefits they provide.
There are people with mortages who have loans with institutions who provide the previously mentioned benefits and there are those who get the security of borrowing from the c.u. I am in no way being argumentative I thought you might be able to provide the exact benefits of being a c.u. member.


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## ontour (27 Oct 2010)

CiaranT said:


> Most peoples biggest loan's are mortgages. Mortgages get wiped out on death via life assurance.
> 
> I don't see any potential next of kin death benefits as a reason to stay with a low interest paying Credit Union.



Certainly the biggest loans are residential mortgages.  Given that there are very few residential mortgages financed by credit unions, they are not really relevant to most people's usage of the credit union.

Recent estimations put mortgage debt at €147.7bn and €29bn in other largely unsecured debt.  It is the €29bn that the CUs insurance is relevant to.  We can see from the money makeover section that even if the mortgage was covered by life assurance, there would be significant shortfalls with the levels of car loans, credit cards, loan for deposits, holidays etc. etc.  Would this not be a next of kin benefit?


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