Credit Union School savings scheme for kids charges a €1.64 affiliation fee

POC

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A few years ago our local credit union started operating a school savings scheme in my son’s primary school. My son left the school over a year ago, and received his first statement last week. His balance had dropped by approx 15%. I’ve been in touch with the credit union by email. He was charged an annual affiliation fee 3 times and a new member fee. We were not made aware of these fees before opening the account, and knew nothing about them until receiving the statement. They say the affiliation fee is charged to all members, but the new member fee should have been waved for the school account, so that will be refunded.

I’m wondering what the norm is for CU school accounts or CU children’s accounts? I’ve never heard of any kind of children’s accounts that charged fees. It’s hard enough encouraging kids to save their pocket money and birthday money - and it’s disheartening for them to see money disappearing without explanation. We will be closing the account ASAP. I plan to contact the school when they re-open, as they might not be aware of the fees.
 
Looks like it was a school based promotion to encourage membership so one wonders why the joining/afilliation fee was charged at all ?
 
The ILCU recommends that an annual affiliation fee of €1 be charged for members aged 16 or more. If any credit union charges affiliation fees to children then that is wholly their own decision and somewhat short sighted if you ask me.
 
He was charged an affiliation fee of €1.64 per year. I was told this is a fee to the ILCU, is payable by all members, and can not be refunded to him.
 
A timely lesson on reading the small print, might be helpful to him in the long run.
 
I don't think there was any 'small print' to read. I have asked whether information about these fees was provided. The credit union have avoided answering this question. They say the affiliation fee 'is payable by all members and has not been a problem previously'.
If we were informed about the fee, and it was our mistake to open the account, so be it. But I really don't think primary school children should have to be reading small print - fees should be transparent. If a child comes home excited about opening an account and getting a free pencilcase - its unreasonable to then expect parents to research whether there is a 'catch'. I can't find any reference to this fee on their website. The website says 'Quality Service, No Fees', but apparently this only refers to transaction fees.
I would be curious whether anyone has experience of these CU savings accounts in other schools.
I am careful about fees. Over the years I've moved current accounts and opened many savings accounts with different institutions, and would be mindful of fees, interest rates, T's and C's.
 
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