Annual General Meeting 17th June 2021
FREQUENTLY ASKED QUESTIONS
We hope this section answers any questions you may have, but if it doesn't and you would like to speak to us please call us - we will be pleased to help you.
Is my money safe?
Yes, by law the money collected by SCU (Suffolk Credit Union) has to be banked within 48 hours. SCU has fidelity bond insurance that covers against fraud by any officer.
Your eligible deposits with SCU are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit protection scheme. Any deposits you hold above the £85,000 limit are not covered.
Is SCU a legal operation?
Yes, SCU is registered under the 1979 Credit Union Act and regulated by the financial conduct authority (FCA).
Can I withdraw my savings?
Yes, although it may take up to 7 days for larger sums. If you do need some money it is preferable to take out a loan so you do not lose your life insurance cover or affect the amount of any dividend you receive.
Do I receive interest on my savings?
No, but you can receive a share of any profits made by SCU which is paid as a dividend to members. The actual amount is decided by members once a year at the AGM (Annual General Meeting) and will depend on how many shares you have.
How do I get shares?
You automatically get 1 share for every £1 you save. So, if you save £200, you have 200 shares.
How much life insurance do I get?
Before the age of 65 you automatically get £1 free life insurance for every 1 share you have up to £7,500. So, if you save £200 you will have £200 extra free life insurance. If you die, the amount paid out would be £400; that's your £200 saved plus £200 life insurance. After age 65 the life insurance reduces to 25p per £1 share, and from the age of 80 onwards you do not receive any free life insurance.
Why do I pay a joining fee?
To become a member and shareholder in the Credit Union co-operative and to help cover administration and running costs.
How much can I borrow?
After saving regularly for 3 months, you can borrow up to four times the amount you have saved with us, up to a maximum of £5000.
Why do I have to save for 3 months?
This helps you to get into the habit of saving regularly. It also builds funds in the Credit Union and gives the credit committee an idea of what repayments you can reasonably afford to pay back on a loan.
What happens if I am unable to repay my loan?
We understand that sometimes peoples' circumstances change so we recommend that you contact us. We may be able to reschedule your loan so you can make smaller repayments, or work out other ways of being of assistance. One of the Credit Union's aims is to help people and reduce worry, however we are not a charity and we do send reminder letters to slow payers. Other action may also be taken.
What interest do I pay?
Although credit unions by law can charge up to 3% per month interest on loans; Suffolk Credit Union's highest rate is 2% per month. There are no hidden penalties or late payment clauses.
Do I have to save whilst repaying a loan?
We ask you to continue saving a minimum of £10 a month as it means you will increase the amount you can borrow in future and increase the amount of any dividend paid to you. Your life insurance cover will go up too. You are also helping others by strengthening the Credit Union and growing the amount available for loans.