Saving money is often associated with preparing for future goals or unexpected expenses. Within a credit union, savings play an important role not only for the individual member but also for the wider membership.
A Credit Union is a not-for-profit financial co-operative owned by, and operated for the benefit of, its members. Every member has a stake in the organisation, whether they save regularly, borrow, or use other available services. This member focused structure means savings contribute to more than just personal financial security.
The Value of Building Savings
Phoenix Credit Union encourages members to save regularly, even if the amount is small. Consistent saving can help build a balance over time that remains the property of the member.
Regular savings can also provide additional financial flexibility. Savings may be used as collateral when applying for a loan and can help members access borrowing on competitive terms. Where a loan is granted, shares are held as collateral against the loan.
For many people, establishing a regular savings habit is an important step towards managing finances more effectively and preparing for future needs.
Supporting Fellow Members
One of the unique aspects of credit unions is how members' savings help others within the community.
Savings deposited in the credit union are used to fund loans for other credit worthy members. This means money remains within the local community, or common bond, served by the credit union.
In practical terms, member savings help provide access to finance for fellow members while supporting the continued strength of the credit union.
Today, more than 3.6 million people in Ireland are members of a credit union, reflecting the important role credit unions continue to play in communities across the country.
Easy Access to Your Savings
Members can access their savings provided the funds are not being used as security against a loan.
Having access to savings when required provides reassurance and flexibility, while still allowing members to build a financial cushion over time.
Protected Savings
Eligible member savings are covered by the statutory Deposit Guarantee Scheme.
In the event of insolvency, eligible deposits would be repaid up to €100,000, providing an additional level of protection for members' savings.
Member Insurance Benefits
Phoenix Credit Union offers a Member Insurance Programme that includes Life Benefit Insurance, Accidental Death and Dismemberment Cover, and Loan Protection Insurance.
These benefits are provided at no additional cost to the member and form part of the value of credit union membership.
Keep Your Account Active
Members should also be aware of the importance of keeping their credit union account active.
Under Credit Union Rule 19, if an account becomes inactive for three years and the credit union is unable to make contact during that period, the account may be classified as dormant.
Keeping an account active through regular transactions can help avoid this situation. If an account becomes dormant, it can be reactivated by conducting transactions and providing photographic identification along with proof of address. Supporting documents must be dated within the previous six months.
Become a Member
Credit unions were established to help people take control of their finances while supporting the communities they live in. Through regular saving, members can build their own financial security while also helping fellow members access financial support when needed.
If you are not already a member, now is a great time to join Phoenix Credit Union and discover the benefits of membership!
