Proposed Dividend CORE

[24601]

The online banks DO OFFER GUARANTEES!

A dividend of say 1%+ could easily be paid, whilst staying well within regulatory parameters.

Trading 212 has cover for up to €20k, and it's not as wide-ranging as the DGS.

A dividend of 1% would cost them about €1.4m. They have too many savings as it is, why would they pay a higher dividend when they can't lend out the money & when they are facing into very turbulent times?

 

[PeeBee]

Trading 212 has cover for up to €20k, and it's not as wide-ranging as the DGS.

A dividend of 1% would cost them about €1.4m. They have too many savings as it is, why would they pay a higher dividend when they can't lend out the money & when they are facing into very turbulent times?

What's your point about Trading 123? Most offer €100k guarantees so, put your €20k in ''123' and the balance in the other offshore a/ccs. Simples really.and you will earn nearly 9 times more than from credit union and sleep easy

 

[ClubMan]

What's your point about Trading 123? Most offer €100k guarantees so, put your €20k in ''123' and the balance in the other offshore a/ccs. Simples really.and you will earn nearly 9 times more than from credit union and sleep easy

Exactly - so if you want to maximise the deposit interest on your funds then don't depend on the CU. Simples.

 

[24601]

What's your point about Trading 123? Most offer €100k guarantees so, put your €20k in ''123' and the balance in the other offshore a/ccs. Simples really.and you will earn nearly 9 times more than from credit union and sleep easy

My point about Trading 212 is that you're comparing apples with oranges. Comparing its rates with a CU is nearly meaningless. Just stick your money with them if your sole motivating factor is return on savings, the CU will not care.

 

[declan11]

Credit unions are not like commercial lending institutions and should not be compared solely on their interest rates or dividends rates. They often lend to people that commercial banks wont and often lend small amounts that are not really profitable relative to the admin costs. That's their role as community banks. They also plough back a lot of money into the community with sponsorship of local organisations., much more than commercial banks and I doubt if the online banks provide any local sponsorship. I think most of their members get this and don't look on their savings with their local credit union in the same light as the others.

 

[Mayo1969]

An Post is paying 0.75% on Demand accounts; that is nearly twice that proposed by the cash rich CORE Credit Union at 0.4% The pillar banks will also pay 0.75% ,subject to 31 days notice. And, as mentioned above, the 'offshore' institutions are paying up to 3.7% on demand monies.The question is, why save with a Credit Union?. They have lost sight of the ethos of and application of MUTUALITY. They rely on the inertia of the Saving Members.

Let's take Savings of €50.000 and compare

@ 3.7% the net return is €1259.50
@ 0.75 the net return is £251.25
@ 0.4% the net return is € 134.00

In other words, the 'offshore' bank pays almost 10 times more NET interest than Core Credit Union and An Post pays almost twice what Core Credit Union is proposing!

Just out of curiousity , is the CU "dividend" subject to DIRT?

 

[TomEdison]

Just out of curiousity , is the CU "dividend" subject to DIRT?

Yes, it is.

 

[ClubMan]

Yes, it is.

Except where it's not.

Tax Treatment of Dividends - First Choice Credit Union

From 1st January 2014 all credit union share dividend & deposit interest paid will be subject to DIRT

firstchoicecreditunion.ie

From 1st January 2014 all credit union share dividend and deposit interest paid to members will be subject to DIRT, with the exception of dividend or interest paid to members who are exempt from DIRT.

 

[Peanuts20]

Credit unions are not like commercial lending institutions and should not be compared solely on their interest rates or dividends rates. They often lend to people that commercial banks wont and often lend small amounts that are not really profitable relative to the admin costs. That's their role as community banks. They also plough back a lot of money into the community with sponsorship of local organisations., much more than commercial banks and I doubt if the online banks provide any local sponsorship. I think most of their members get this and don't look on their savings with their local credit union in the same light as the others.

not to mention the monthly draws and raffles, funeral insurance etc.

 

[ClubMan]

not to mention the monthly draws and raffles, funeral insurance etc.

And the lending rates higher than the quoted APR because of the insistence of many/most CUs that the borrower keep 25% of the original loan on deposit/in shares while borrowing.