What rules do they have on maintaining money in shares/deposits while borrowing? Does the rate reflect the cost of having to do this if applicable? Is the rate a CAR?dundalk cu now charge 6.95% interest which compares favourably with a lot of banks especially for the likes of a car loan. they also have an atm with their own card if required.
According to whom/what?Loan rates vary from 4.5% tp 12.68% APR, but seem to be averaging out at about 7 to 7.5% APR.
With respect to the maximum 1% p.m./12%+ APR that they could charge and not the rates mentioned above presumably?And quite a few offer interest rebates or refunds to borrowers.
Which is a member owned organisation so the cost is ultimately borne by the members?All of this on top of free-to-members life savings assurance, the cost of which is borne by the credit union.
These are not truly free. They must be paid for by somebody. As above even if the CU bears the cost it is ultimately the members who pay.And on top of this, credit unions provide free to members Loan Protection Insurance. And very many credit unions provide Free-to-members Permanent and Total Disability Insurance. And Many also provide Death Benefit Insurance on a free-to members basis.
Loan rates vary from 4.5% tp 12.68% APR, but seem to be averaging out at about 7 to 7.5% APR.
What, if any, requirements are there to keep money in shares/on deposit while borrowing and has anybody figured out a way to factor this into the "true" APR cost of credit?
How so? Surely if there are higher surpluses available then the CU could pay higher dividends/interest on shares/deposits? To claim that there is some sort of free lunch here makes absolutely no sense?In the case of "free" insurance, it is true that the members pay for this but , in reality, it is paid from surpluses and does not affect either the dividend rate or the deposit rate, and certainly not the loan interest rate.
How so? Surely if there are higher surpluses available then the CU could pay higher dividends/interest on shares/deposits? To claim that there is some sort of free lunch here makes absolutely no sense?
They allow any size withdrawls without notice. Granted it's not cash but when I needed a cheque for the deposit on my house I had no trouble. My bank only allows me to move 5000 online every day, probably less if I went in looking for cash.
Mine certainly does and I can see each month that we have enough cash to repay savers and where the investments are. However, I accept your point on savings protection. Current discussions between the ILCU, the Department of Finance and the Regulator might sort this problem out.How many credit unions make their accounts publically available ?
You appear to be a member of a quite unusual credit union publishing it seems monthly management accounts and detailing its investments schedule to its members. Are you sure of this ? Are they available online ?
Current discussions on savings protection have been ongoing for over two years. Previous discussions broke down and only restarted at the behest of the Minister. Last year the Department spoke of a solution in early 2007. But there is still no sign of a solution.
Seems the ILCU want to set up their existing scheme as separate company within its so called “group”.
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