Savings account with Credit Union - still safe?

P

Plek Trum

Registered User
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Hi all,
Both myself and my partner have seperate savings accounts with a Credit Union (low return I know, but was very convenient at the time to go with them and set up a DD each week).

Both of these accounts have approx 27k each in them. Given the recent investiagations , would you recommend we transfer our savings elsewhere?

We are getting mixed advice from friends and would appreciate opinions of those 'in the know'. Given the situation with all banks we even considered a home safe!

Many thanks as always...
 
The are included in the Governments 100K guarantee. However some CUs are in difficulty, mainly those who lent mortgage sized loans and/or started to play with stocks etc.
 

Not only are your savings guranteed up to 100k but if your CU ran into trouble there is every possibility it would be helped out by the Irish League of Credit Union's Savings Protection Scheme. No CU has been forced to fail yet but I would think one or two might run into trouble. The recent investigation as you put it is aimed at preventing any CU going the way of the banks.

Slim
 
Hi Plek Trum,

You can get a much better return for your money in places other than CU's. Do not put any money in a CU if you want a good return for your money.

You can also get high/full deposit protection elsewhere.

Have you read the 3 best buy threads?

Ciarán
 
Slim said:
Not only are your savings guranteed up to 100k but if your CU ran into trouble there is every possibility it would be helped out by the Irish League of Credit Union's Savings Protection Scheme...

Slim
Click to expand...

According to an article in last Sunday's Business Post, the ILCU Savings Protection Scheme has less than €120m (of which €4m has been used to fund building projects for a number of CUs) to protect more than €12bn in deposits. Not very comforting, and reminiscent of past bad debt provisions of our then 'robust' banks.
 
Many thanks for all advice and replies, much appreciated as always. Accounts were set up when we left college and not really thought about in a 'productive' sense until we realised how much we had saved in the past few years. Nice surprise to get but yes, will have a look at the best buys thread for sure and start to make our money work for us.

Thanks again for taking the time out to post, appreciated.
 

Yes, it does not represent a huge percentage of the total savings but I suppose it is hoped to only need a relatively small proportion of the fund at any one time. Also, it would be used to support a CU to survive on its own rather than as a savings guarantee which is the role of the Deposit Guarantee Fund, up to €100,000 per saver. The Scheme is discretionary also so any CU which is insolvent and unsaveable might not get any support but be let wind down. Slim
 
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