Savings at Mitchelstown Credit Union
Saving on a regular basis makes good sense. When you save you not only help yourself, you also help your community as your savings provide a loan fund for other Mitchelstown Credit Union members.
Mitchelstown Credit Union provides you with a secure place to save, with the added benefit of a dividend paid out on your savings at the year-end. Your credit union is committed to your financial well being so as a member you can rest easy in the assurance that your savings are safe.
A credit union savings account comes with a free Life savings insurance scheme. This is the insurance cover a credit union provides for members as an additional incentive for them to save regularly.
Shares and Dividends
Every €1 saved is equivalent to 1 share in Mitchelstown Credit Union. Every share you hold with Mitchelstown Credit Union for the year is eligible for a dividend when declared at Year end. A dividend is the return on your shares and it is paid by your credit union out of surplus.
The savings in Mitchelstown Credit Union are used to make loans to other members. The interest received from loans and investments is used to pay operational expenses and to build up reserves. The remaining income may be returned to the member as a dividend. The rate of dividend may vary from year to year. Dividends are applied to member’s accounts after approval at the AGM. The dividend rate paid must be the same for all accounts.
Withdrawing Your Savings
You may withdraw your shares, provided they are not pledged as security for a loan.
However, as far as possible members are encouraged to keep their savings intact, thus ensuring that:
- The shares continue to earn a dividend
- They continue to benefit from Life Savings Insurance Protection
- The member can maintain their credit worthiness and capacity to borrow
Members should note that withdrawals from your savings after the age of 55 may reduce the amount of life savings insurance cover.