The Credit Union Business Model: Why Members are Encouraged to both Borrow and Save at Derry Credit Union

Saving and borrowing at Derry Credit Union work hand in hand. If Members did not save, we would not have funds to lend. If Members did not borrow, we would not generate the income to pay a dividend on savings.

Here are three reasons to save at Derry Credit Union:

1. Life Savings Insurance is applied to your eligible shares at no direct cost to you. This means you have more to leave your loved ones in the event of your death. Click here for more information: Life Savings Insurance
2. Some or all the savings in your main credit union account will be pledged against your future loans. The greater the savings you can pledge, the larger your potential loan.*
3. Loan fund: Members’ collective shares create the fund which provides loans for our borrowing Members.

Rather than withdraw your savings, borrowing may be the sensible alternative when faced with an expensive purchase.

Here are four reasons why it can make sense to take out a credit union loan, provided you are eligible to borrow and can afford the repayments.

1. Loan Protection Insurance clears your eligible loan in the event of your death at no direct cost to you. With six loans at attractive rates of interest, we are sure to have a loan to suit your needs*. For more information about our range of loans, click here: Our Loans  For information about Loan Protection Insurance, click here: Loan Protection Insurance
2. Life Savings Insurance applies only to savings that remain intact in your account. You lose the insurance attached to shares you withdraw. If you take out a credit union loan instead, you can leave your shares intact where they will continue to be insured, and your eligible loan will be covered by Loan Protection Insurance*. Click here for more information: Life Savings Insurance
3. Annual dividend: The credit union generates some of its income from the interest borrowing Members pay on their loans. We pay Members’ dividends from this income. The bigger our loan book, the greater the likelihood that there will be a higher dividend paid on savings!
4. Interest rebate: A rebate of the interest paid by a borrowing member on a Standard Loan is applied each year once the rate of rebate is approved by our Members attending the AGM. This creates a welcome bonus for these borrowers just in time for the Christmas season!

*Terms and Conditions apply

Finally, most borrowing Members continue to save while they repay their loans, meaning they can watch their savings grow while their loan balance shrinks. What could be more satisfying?