Credit union refusing money

R

RentingD

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Managed to build up 5k and tried to lodge it in my local credit union. They said they cap lodgements at 2.5k a month so i can't lodge it and the bank is now closed. So annoyed!

I don't see the sense in this policy, thought they'd like lodgements. I've had loans and standing orders to CU over the years and now I wonder what the point in the account is at all. Are we not supposed to be saving? It also cost me 3.50 to get the bloody draft and it will have to go back into the bank.
 
They don't like too much, credit unions are awash with funds and it's basically costing them money to get it minded by other banks, years ago they earned good interest in what they invested now it's the opposite situation! They need to lend rather than gather at the moment. They will be handy to you if you want to borrow.

3.50 is cheap for a draft, UB is a tenner these days :)
 
Really! A tenner to take out your own money!
I've always found the CU great for loans amd lovely to deal with, never heard of them turning away deposits so interesting to know why that was. I'm just peppering in case I lose the draft now.
 
Quite a few of them have a cap on the amount you can have in there at the moment, our local one has reduced it from 100k down to 50k recently so a cap on lodgements is something similar and for the same reason I imagine.
 
I would think most have a cap at this stage. The limit on deposits per month is a relatively novel application of the cap but it is presumably to mitigate the fact that most of the savings growth is from the cumulative effect of lower balances growing rather than the impact of growth in larger balances.
 
@Renting D

Why do you want to transfer to the credit union?

If it is to avail of a credit union loan at a later point, then it makes sense.

Otherwise you might as well keep it in a bank as they seem to be more inclined to accept your money.
 
If you don't want to use the money for a year then set up a family savings account with E.B.S. Up can transfer up to one thousand per month for 12 months and you get 1.75% interest less DIRT. Its not a lot but its one of the better ones available at the moment.
 
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